In the webcast presentatation of half year results in November, 2011, management expressed a belief that we have reached the bottom of the construction cycle and it is not going further down.
According to the latest Australian Industry Group (AIG)/Housing Industry Association (HIA) index, the building sector in February, 2012, has declined for the 21st consecutive month.
The national construction index dropped another 4.2 points to 35.6 in February (50 points is breakeven).
The AIG said there was a slowdown in all building sectors (houses, apartments, commercial and engineering).
At best, the outlook for the next few months appears flat.
Shareholders would like to feel reassured that the company is doing better than the industry trend.
To avoid jumping to the conclusion that management has misjudged the market, we await urgently news from Directors.
CSR Price at posting:
$1.83 Sentiment: None Disclosure: Held
