Dr Pwu, I agree with the contributing factors you identified to...

Dr Pwu, I agree with the contributing factors you identified to the falling share price. It seems there is a combination of factors including negative economic sentiment, low construction activity, shareholder panic and speculative influences.

The new CEO needs to be given a go. He looks like a hands-on executive who is familiar with the operation. But he has also taken on the role at a difficult period in the building cycle.

I believe the share price will bounce back to a realistic value whenever economic confidence and construction activity significantly improves again. I strongly suspect that nothing dramatic will happen here until the present weak federal government is gone and political stability is restored.

In the meantime, the company has a strong balance sheet with relatively low debt. Management needs to generate consistent acceptable earnings and even grow profits through these difficult economic times to maintain the share price. Any excess cash should be applied for earnings-accretive bolt-on acquisitions at low prices.

Most importantly, the company needs to keep paying acceptable fully franked dividends to shareholders to ensure support.

For me, satisfactory regular dividends are the main appeal of investing in this company. However, I do hope for good capital gains on the share price every few years during construction booms .

DYOR