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Does MM like building industry & stocks into current sell-off?

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Does MM like building industry & stocks into current sell-off?

ASK: JAMES With the struggles for the building industry now obvious i.e. cost increases, supply issues, falling new build applications, etc, do you see benefit in considering CSR, BKW, JHX, etc after their recent selloff, or is it best to put them in the "too hard" basket for now? If they offer value do you have a preferred stock in the sector?


Hi Tony,

We still own CSR Ltd (CSR) in our Flagship Growth Portfolio and it remains our preferred stock of the 3 you mentioned followed closely by James Hardie (JHX). CSR like the whole sector has been smacked fairly hard on economic concerns i.e. aggressive hikes in interest rates has heightened investors fears that a severe economic contraction / recession could be just around the corner.

At this stage sentiment and the downside momentum feels totally entrenched and MM is not yet looking to increase our position in CSR. In other words, it does indeed look a bid hard here and now.

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