Welcome aboard. Bell Potter put out a research report with a target price of 27c which could explain the volume.
Yes, patience is indeed required. I wouldn’t call this a defensive stock. This is very much a cyclical stock in that housing and infrastructure are huge drivers of demand and large reductions in demand can have a devastating impact on profitability as prices drop (due to excess market supply) while utilisation also drops - a very bad combination.
BUT infrastructure spending is high with a strong pipeline to support the group and that is where they have invested. It’s worth noting that growth capex has been SPENT so they just need a few contract wins and profits + margins will increase.
As a reminder to everyone else, the latest NTA was 22c which is just below the SP today. The balance sheet is strong and a Uni-Span acquisition is likely to be accretive and result in broker upgrades - both brokers have not factored any M&A in their modelling. Plus, investors are being compensated with a very attractive yield which has scope for growth given the payout ratio (from memory) was only 40% while the present PE is extremely low. GLTAH
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