Rpmsol, I've just finished a round of interviews with the company for the purpose of an analyst report. However, I came across the company many years ago when GPG bought in and I noticed that kids playgrounds contained CAA aluminium extrusions. This is going to be a transformational year for the company and a lot of upside exists given the upturn in building approval and housing starts. In the recent half yearly a lot of hidden goodies were inbedded in the results. While a bottom line loss was recorded - and I expect that continue in the next financial year - EBITDA was very strong as well as net cash flow. Looking a little deeper, if the housing market swings to the upside as I expect it to (approvals, house prices, household spending all on the increase) it is going to bode very well for the company.
I work for a bank and the business is gearing up to take advantage of the housing upturn. These sorts of developments are leading indicators to 'turns' in the market - a market in which CAA is highly leveraged to.
I spoke to Bell (another broker last week) and they have a $0.30 valuation on the stock, but you'll see an upgrade to that if the upturn eventuates in 6mths. I have a $0.45 valuation on it.
CAA Price at posting:
23.5¢ Sentiment: LT Buy Disclosure: Held
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