Austal (ASB) share price decline

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Question asked 26/03/2021

Austal (ASB) share price decline

I note that you still hold Austal (ASB) in your Emerging Companies Portfolio. I have been accumulating them with a long term view and am rather surprised to see their price continue downwards. Their fundamentals appear sound. I am wondering what your current view is on their long term future

Answer

Hi Ian,

It’s clearly been a tough period for ASB with investigations and now issues with supply of key materials which has delayed completion of vessels however we do view these are short term hiccups as opposed to longer term structural issues with the company.

We like the shipping business believing it;s cheap at current levels however the markets clearly not currently embracing our view hence we are only consider increasing our position size under $2.

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Austal Ltd (ASB)

LAST UPDATED 26/03/2021 07:51

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