Question 1: Following Boral recent update, the stock has tumbled a further 7%. Being a long term holder of the stock, I’m not sure if we should cut and run or hold on for the long haul?
Answer: Boral (BLD) has had a poor run – the latest “financial irregularities” in its North American business raising distinct issues around management credibility. I would be inclined to cut as I don’t think the market will re-rate in the short term – but I don’t know what the break-up value is. At some point, Boral must also itself become a takeover target. As for the brokers, consensus target price is $4.59 – range of estimates from a low of $4.25 to a high of $4.90.
Question 2: Have you formed a view yet on participation in the Centuria Metropolitan REIT (CMA) to retail investors?