When I populated my superannuation fund's share portfolio from scratch circa June 2006, I chose ABC because I thought that ABC would benefit from the resources and infrastructure sectors, and do better down the track when the building industry emerged from the doldrums. ABC has retained its share price and paid a reasonable dividend, making it a better than average investment for me in these difficult times. Its SP is now about what I paid for it, whereas my portfolio is on avearge down by about 18%.
The cement and building products businesses are obvious - the housing slump is a negative, and infrastructure development is a positive. Lime is used for processing ore and treating water - both good themes.
If I had to build a portfolio from scratch today, ABC would certainly be on the short list. It will not do anything dramatic, but it should not disappoint.
The energy-hungry nature of making lime and cement is a negative. However, I cannot see Australia reducing lime and cement consumption to pander to feel-good sentiments, and ABC is probably ahead of its competitors in optimising its fuel consumption.
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