My fingers are getting itchy. MGR is now trading below 2001 prices before the great asset bubble boom begun. In fact, the earnings strength is still quite good, despite the forecast/divi slump – cutting divs is important and smart in my opinion. Home prices have dropped, and activity slowed, but this sort of slump is pricing in American style 50% drop in asset values and prolonged crisis. Even if Aussie housing was to drop 30% now, it would still be relatively cheap.
This cyclical is starting to look oversold to me. Any opinions or have I missed a bit of crucial news about the fundamentals of the business itself being completely FUBAR’d? Happy to stand corrected for some greater wisdom.
ps. I have no current interest, though I am interested