directors - managements, page-7

I agree with Dr Pwu. The CSR share price should recover through time. But the price in the short to medium term could be a problem.

Since the 3-to-1 share consolidation, the CSR share price has been hammered. Over this period, the share price trend has declined substantially (and is falling ) below movements in the ASX top 200 index. Presently, there seems to be a prevailing negative market view of this stock. Some investors may be panicking further adding to the decline.

As mentioned previously, adverse macro-factors include general negative economic sentiment, low-points in the construction cycle and the ineffective and unstable federal political environment (probably lasting for the next 2.5 years).

Other factors are likely to negatively impact on company earnings. These include the dumping of cheap subsidised Asian products (eg glass, insulation) and the high rising foreign exchange rate (making imports cheaper). But positive factors are increasing local demand for building products after the natural disasters. This recovery, however, is reported to be tardy.

I believe there is also widespread uncertainty about management and the domestically focused restricted product offerings of the company.

The reporting of satisfactory full year results and announcement of a good final dividend on May 11 are vital for restoring confidence in this company.
Any sensible earnings-accretive bolt-on acquisitions at bargain prices using excess cash (not borrowings) may also be seen positively.

It is very important the board announce a STRONG FINAL DIVIDEND to underpin the value of this investment to investors and maintain their support.


Disclaimer
Please note that I am not providing valuations, advice, information, recommendations or predictions. The above statements are merely my own calculations, comments and thoughts as an ordinary shareholder without any special skills or knowledge. I absolutely disclaim any responsibility or liability whatsoever for any consequences arising from the use of my calculations, comments and thoughts expressed. If you require advice or information, you should seek the services of an appropriately qualified independent expert professional person as well as do your own proper and thorough research.