JHX soared +13.8% on Wednesday following strong guidance amid improving margins. The company said 3Q earnings were expected to come in at $US165-185m, a huge $US40m beat to consensus, and if this run rate can continue through the rest of the year, JHX could produce FY24 NPAT ~10% ahead of consensus expectations. Shareholders also enjoyed the new $US250m buyback – we covered this excellent result in yesterday afternoon’s “The Match Out Report”.
This morning, we’ve revisited JHX to point out an important aspect of successful investing, which is often overlooked, i.e. the Psychology of investing. It would have been easy on Wednesday to say phew, we avoided S32 or expletive, we missed JHX, but overall, it is adding value/alpha that matters on a quarter-by-quarter basis. Nobody will get all the winners or avoid the losers, but an honest and balanced approach will add value in the long run.
- We are still targeting a test of ~$50 for JHX, although after yesterdays move, that is only 6% away.
MM is bullish on JHX into Christmas
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