We’ve written a couple of times this year about the ASX losing stocks faster than it replaces them with quality IPOs, with the Building Sector epitomising this trend:
- CSR looks set to be swallowed up by French giant Saint-Gobain in a $3bn deal.
- The Stokes Group has bid to take full control of concrete business Boral (BLD) – it already owns 71.6%.
- Cement maker Adbri (ABC) has agreed to a $2.1bn buyout from Irish giant CRH Group.
This morning, we’ve taken a look at the depleted lineup of ASX’s building stocks to see if we perceive any value remains after the major M&A action in the sector.
MM believes the CSR bid at $9 will prove successful
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As a point of reference, we took a brief glance at the US Building Products Index first up, and the pictures a clear one with the index pushing to fresh highs in line with the S&P500 and a number of local stocks.
- We can see the US Building Products Index pushing higher after its breakout to fresh all-time highs.
MM is cautiously bullish on the US Building Sector
