where to?

We have the worst federal government in living memory. The extreme idealogues in this government are hell-bent on changing the structure of the Australian economy. At the same time, they will do whatever it takes, including lying and abruptly reversing policies, to cling to power. This government also has a long history of poor and ineffective policy implementation.

The domestic economic situation is not good, and is likely to deteriorate further, while the present inept administration and political instability remains. We have to endure another 2 or so years of this farce, unless a left-field event occurs beforehand.

During the next two years, it is appropriate for CSR to secure a series of small cash acquisitions at bargain-prices as opportunities arise.These acquisitions should be strategic-fits and instantly earnings accretive. Such low-risk additions should beneficially position the company for the upturn later in construction activity.

It makes good sense for the company to reinvest surpluses into the existing operation and to focus on improving operating efficiencies for better margins.

The new management looks promising. They seem to have a vision for the company and a good understanding of the business. There have been recent enhancements to the corporate website and an increase in media advertising and other promotions. The creation of more public exposure to CSR brands is definitely a positive move.

The company must continue to pay acceptable DIVIDENDS to appeal to shareholders. The best way to build investor confidence and improve the share price in the long-term is to maintain and grow earnings (profitability) and operating cash flows.