I'd like to share my thoughts on this stock. IMO, I think there has been too much interest in this stock for a severe retrace. Anyone who thinks FBR’s invention will not change the trade, really needs to walk onto a large building site and take a look around. I work on building sites Australia wide and the Asia Pacific; most recently Redbank Plains, Brisbane. That suburb has been built in 10 hectare blocks for the last decade plus. In Canberra, I helped prepare a new suburb for building works called the Denman Prospect which is 180 hectares (not to mention the Wright suburb-300 hectares). I don't know how many houses they'll get in there, but that is a large area. Oran Park in Sydney is another one. The farmers who owned that land are now just shy of being billionaires...the down payment for works to start was $150 million! I met the guy; rocked up in his brand spanking new Range Rover, walked around after us picking up his old steel stakes…you’d have thought having tens of millions in the bank he’d not give a sheet… typical farmers huh. Anyway, my point is that these building companies have big dollars to spend in Australia. I know several other sites are planned in the next 5-7 years that are HUGE, one of them is 1000 hectares plus. If FBR could get a shift on, they’d kill it! One engineer and a foreman I worked alongside recently were left incredulous when they watched the Hadrian 105 time lapse.
I'm from the UK originally and it amazes me how fast and how much of this country is being built. We've so much space! From experience, when assisting a new suburb being built, the phases are as follows:
1: Landscaping using large scrapers.
2: Service laying (pipes, electricity etc).
3: Road/walkway Infrastructure (giving Fastbrick accessibility).
4: Plot/boundaries identified.
5: Foundations laid (concrete poured) and building commences.
Think of defence being the catalyst that brings change…They’re in the process of switching to unmanned operations for the last 10 years…it makes perfect sense that civilian applications, such as construction operations will follow suit.
In summary, this stock can retrace as much as it wants, I'm going long term, when the Fastbrick team have a product on site, and the building companies see what can be achieved, I’m confident it will change the trade forever.
Thanks for reading.
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