This company does not have investment appeal for the following...

This company does not have investment appeal for the following reasons:

. A falling share price
The share price is dropping due to deteriorating macroeconomic and industry conditions and ongoing management inability to achieve positive results in the key glass division . There is also high volumes of short-selling in the stock;

. No fully franked dividends
Management recently announced no fully franked dividends for at least the next 3 years. Shareholders will lose the benefits of imputation tax credits;

. No future capital returns
There is no prospect of future capital returns to shareholders for many years. This is because of imposed regulatory hurdles (a requirement for managing asbestos liabilities following the Sucrogen divestment).

. Unlikely takeover target
It is unlikely the company will be a takeover target because of the uncertainties and stigma of asbestos liabilities (even though the company conservatively manages these) . This means no takeover premium component in the share price. If CSR did not have this oversensationalised rod on its back, it would have been taken over by now.

It would be more advantageous for shareholders, if the company were wound up now and the surpluses distributed. The Net Tangible Asset backing per share at 31/3/12 was $2.32; the current share price is $1.46. However, asbestos interest groups might say something about this.

The way things are going for CSR, it’s time for a circuit breaker.