Housing market/up comming report

News from the weekend showed a continue in the ever growing housing bubble/market that we have in both Victoria and New South Wales. For the short to medium term it can be viewed as a positive sign for Simonds core business, that of home building and developments.

While I would be willing to put money on any serious investors waiting for the up comming report before investing more, I think this weekend highlighted that the bubble we are experiencing still has time left in it and a lot to be made for developers like Simonds.

The upcoming report which has been hinted by many on the grape vine or loosely in the know that BAA will be sold off will allow SIO to focus on its core business. I think that the continued growth in SIO core market should be a positive for the SP moving forward as long as the report shows the increase in efficiencies the company is targeting have been achieved and works in the pipeline are achieving target dates. The sell off of BAA should only accelerate the SP due to increased levels of liquidity the company can now invest in its core business.

While an investment in SIO was realistacally an investment in two businesses it will be interesting how the sell of of BAA will be conducted. while I have a feeling it will be taken completely private I would be interested to know if the funds raised are kept as cash or handed out to investors as a form of additional dividend.

General discussion about SIO and the property market I would be interested in other people's views