Yes, Grebmoolb. The Rinker demerger ended up being a great deal...

Yes, Grebmoolb. The Rinker demerger ended up being a great deal for shareholders.

CSR paid too much for Viridian at the end of the rising cycle. It is interesting how many businesses make mistakes by expanding at the end of booms in business cycles, just before the fall occurs. They spend years afterwards trying to recover their outlays. The company has also had problems managing the operational aspects of this business.

I agree with you about the dividend. I believe the directors should have paid a more generous final dividend which was consistent with normal dividend levels. This would have underpinned the value of the company share price.

As I have mentioned before, the company faces extensive external headwinds (eg negative consumer sentiment, low housing starts, political instability, rising interest rates, proposed carbon tax, high exchange rates, overseas dumping etc).

I believe small immediately earnings-accretive bolt on acquisitions, not large scale expansion, is a sensible application of excess cash.

I hope I am wrong, but I do not think CSR is a takeover target. Although it has attractive brands and businesses, the uncertainties and controversies around asbestos liabilities may deter otherwise interested predators.

This company must maintain regular acceptable dividends to be a good investment for shareholders.