A: Hi Phillip,

Thanks for the question.

I am not sure that Monadelphous would be a integral stock in my SMSF portfolio. The performance was stellar and management has a pretty strong reputation, although it was largely earned in a booming resources market. It is now under pressure as construction activity wanes and margins fall.

It is clearly out of favour with the Brokers, who have a consensus target price of $15.95, and sentiment of -0.5 (-1.0 most negative, +1.0 most positive).

I think you are going to need to be patient holding this stock. Market expectation is that there is more bad news to come (and of course, it is priced for this).

Paul Rickard