Boral (BLD) – why is it falling?
Hi team, MM mentioning construction still strong – what about Boral BLD? Is it falling because of the takeover dizzy heights, do you feel more downside to come? Kind regards Barb H
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Answer
Hi Barb,
BLD shares have fallen 20% since Seven Groups (SVW) bid became successful and they started shaking up the board – their final bid price was $7.40, basically where the stock topped out. The reason I suspect for the pullback is 2 fold. 1. the belief that BLD will now be run for the benefit of the Stokes’ empire as apposed to other shareholders 2. Index consequences given their holding has an impact on liquidity. While Kerry Stokes is nobody’s fool and if he’s prepared to pay $7.40 for BLD there is a case to buy the stock ~$6, we prefer to play the sector via CSR Ltd (CSR).
