New home sales showing encouraging signs. Other housing market data incl prices indicating we are jumping around the bottom, recent interest rate cuts + the realistic expectation of more, the current rental "crisis" in WA, the continued population inflow into WA and the broad expectations of a pick up of such... - amongst other things - all these factors should be strong tail winds for this company, particularly at the current price... I am perplexed that there is such little interest in the stock.
Is there something I am missing?
Sure, it's balance sheet could be better, but that should improve notably as at 30 June with the successful launch of eleven78, which, as has been noted in this thread was 95% pre sold, and as noted in the annual report, is expected to contribute 5 mil in profits in the second half. Recent announcements also show some positive signs in moving to an independent board - which will hopefully see a reduction in related party deals, whilst their construction division has done OK at winning contracts... All of the above seems to me to be positive... I just don't get it.
Definitely one to watch in my view Tyler, and I would be interested to hear others thoughts as to why this company is so unloved at present...
Please note; the author of this post has a stock holding in this company and his views may be unknowingly influenced by that holding. You should never purchase anything based on someone else's opinion. "Beleive nothing... No matter who says it..."