So Tamawood are admitting they are not immune to the contract...

So Tamawood are admitting they are not immune to the contract and materials pricing disaster that now besets the home building industry.

We now face a situation in this country worse than the mid-1970s, when building costs jumped 30% overnight due to the unions wielding tremendous power with wages. TWD have confirmed they've only been profitable for 2 out of the last 6 months, due to materials costing in some cases up to 50% higher. This comes as a shock to me, as Tamawood have always proven themselves to be one of the better players in the market.

My contacts in the building industry are telling me that some of the cost blowouts are due to suppliers and contractors virtually extorting/rorting builders, who they know are under tremendous pressure to get projects finished but who are having to contend with labour and supply chain constraints.

As a holder in TWD only through the recent takeover of AstiVita, I'm peed off as they had offered stock at the now high price of $3.10 (equivalent), knowing full well that the proverbial was hitting the fan, without making full and fair disclosure.

Anyway, this stock should plumb the depths we saw not during the worst of Covid, but during the worst of the GFC. I'll be buying when that happens to make up for my guaranteed paper losses in the meantime.