BSL has recently been added to our Hitlist for similar reasons to JHX, the stocks fallen well over 40% and it’s now trading on a P/E for 2023 of only 6.7x while at the same time the companies rolling out an exciting Colourbond equivalent in the US. Similar to the building space as a whole there’s a significant amount of bad news already factored into the housing industry and while as we discussed earlier “bottom picking” in bear markets is not a good game from a percentage perspective this is more of a macro call as opposed to looking for a company to address its internal struggles.
- We like the risk/reward towards BSL around $16 but we again would advocate keeping some $$ in reserve for a spike to fresh 2022 lows.
- In essence we believe BSL will be trading higher into 2023.
MM likes BSL into current weakness
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