silence is dross

Directors aren?t keeping us in the information loop. Their last statement served at the AGM a month ago, was that they were ?currently assessing a number of bolt-on opportunities in the $25 - $100 million range?.

Since then, the world economy has become one of: European basket-cases, out-of-control sovereign debt, American paralysis of recovery, stockmarket pneumonia, and share prices going down faster than the lifts at Westpoint tower.

In all this, our directors have unctuously said nothing.

Perpetual, probably the only wise monkeys around, have bravely put their investment philosophy on the line, and steadily built their shareholding in CSR from 5% to more than 12% over the last 6 months.

I can only applaud their integrity. They?ve always been long-term investors, not fly-by-night speculators or short-term profit-takers. (Go home, short-sellers and carpetbagging hedge funds!).

It is Economics 1 wisdom, that the principal purpose of a stock exchange is to raise capital for long-term investment, backed up by dividends which are superior to the alternative investment options (such as real estate or leaving money in the bank).

Right now the market is in the basement, and possibly going sub-basement. The company is debt-free and cashed-up. We should now be acquiring bolt-on, profitable businesses. (If we don?t, the carpetbaggers will).

Shareholders should be holding on with handcuffs to CSR stock, knowing that dividends are inevitable from reliable cashflows. I know a lot of us, in this market, know the truth of the old investment adage, ?.?If the bell hops say ?sell? ? buy!?.

What?s happened? Yesterday, every major building materials stock went up significantly (Boral 4.7%, Hardies 3.13%, Fletcher 1.2%) ? except CSR (down -0.83%). This was despite Perpetual?s brave , some would say audaciously realistic purchases.

Why? Because, like the Brixton rioters, investors are ?out of the loop?.

All we have to keep the faith, is month-old platitudes from directors.

Come on directors, let us in on the good news, even if it is only a wink and a nudge.

This is a profitable iconic Ausrealian company. A few decades ago, it was one of the top 10 companies on the ASX. It has a long history of consistent dividends - better than most other listed companies.

Directors, tell us anything. But tell us something.