John, I hope you are right about impending inflation, but I can...

John, I hope you are right about impending inflation, but I can think of a few deflationary pressures we'll be seeing in the near future (not specific to SDG):
- More working from home --> less demand for office space
- Fewer international students --> less rental demand in Australia's education capitals (and flow-on effects to local businesses)
- Less immigration --> lower population growth

I've taken a bit of time to digest the financials.

Full disclosure: I'm a pessimist by nature - so I'm sure this has coloured my observations, which are listed below.

The negatives:
- Revenue is down 40%
- Free cash flow is way down
- Net assets for the company are down - book value per share has only risen because of the buybacks
- Debt-to-equity ratio has risen
- The company has elected to pay a dividend despite borrowing $62m, and losing cash

The positives:
- Current ratio of 8
- Current asset backing of 18.9cents per share (calculated as recommended by Graham: current assets minus total liabilities)
- Book value per share of $2.48
- Most of the company's unsettled lots are in the Gold Coast, where property prices aren't as aggressively inflated as Sydney or Melbourne

Bottom line:
- Balance sheet and cash flows are weaker than I'd like, and the business seems exceptionally susceptible to deflation and uncertainty.
- I won't be selling, as I think the upside potential if we see major inflation is huge... But, I won't be adding to my small holding at this time.

Not advice.