Not to crash on the Fool's party but, this is somewhat of a simplistic and misleading article.
Perhaps a more constructive comparison would be to review the performance of BLD against of construction materials companies specifically.
Up until late April, the sub-sector was travelling fairly sideways and only trailed off from early May. Over the past 3m all the major construction materials players are down between 9-24%, ironically, Boral has performed best during this short period mainly due to the recent Vik spike but even before this it was perfoming comparatively to others.
When reviewing the previous 12m performance of BLD, don't forget that $2.65 was returned as capital with the SP going XC on 4/2.
On 10/6/21, BLD closed at $6.83. On 10/6/22, closed at $3 or $5.65 after you include the capital return. This is a 17% loss over 12m, not 54% as stated above. JHX has by comparison dropped from $44.54 to $34.87 (21% loss) and CSR has dropped from $6.01 to $4.35 (27% loss) over the same period.
The downturn is not a BLD specific issue but rather genreal concerns re: slowing construction industry activity together with fuel etc cost inflation.
BLD Price at posting:
$3.00 Sentiment: Hold Disclosure: Held
