OK I'm going to stick my neck out and call a change in sentiment for this long suffering stock. In other words, this is a line in the sand because from here this stock HAS to shine because key fundamentals are now in its favour.
The building and construction industry is gaining tremendous momentum and with interest rates to stay low for some time to come it will only get stronger. CAA is highly leveraged to this sector and has excellent distribution channels to it.
The AU $ is now much lower and will be making competitive imported product more expensive which in turn makes CAA product more attractive.
The synergies from the One Steel acquisition should now be flowing through to the bottom line as will the savings from cost reduction initiatives.
It would be nice to see management a little more proactive with investor road shows and market updates.
I note key shareholders have stuck with the stock and will now be expecting management to deliver the goods.
Watch this space.
DYOR
CAA Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
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