Is Boral Worth Buying?


What Does Boral Do?

Boral [ASX:BLD] is Australia’s biggest construction materials and building group, with operations also in the United States and Asia.

What is Happening to Boral’s Share Price?

Since the 20 January this year, the stock has been in a strong uptrend. It closed at $5.22 on that day in January. It’s now risen to over $6.20.

Yesterday the company announced it would buy back $236 million of its own shares over the following year. This is bullish for the share price as each remaining share is entitled to a larger claim of the earnings and profits of the company than previous to the buyback.

What Now for Boral?

As Boral operates in the construction industry in both Australia and the US, it has a bright outlook. Both countries should see strong housing sales and starts for the foreseeable future. That should boost earnings for Boral which supplies materials like cement and concrete. If you understand how the real estate cycle works , you’ll see why Boral is worth further investigation for your portfolio at the very least.


Callum Newman,
for The Daily Reckoning Australia

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Callum Newman

Callum Newman

Callum Newman is the editor of The Daily Reckoning and Associate Editor of Cycles, Trends and Forecasts. He also hosts The Daily Reckoning Podcast. Originally graduating with a degree in Communications, Callum decided financial markets were far more fascinating than anything Marshall McLuhan (the ‘medium is the message’) ever came up with. Today Callum spends his day reading and researching why currencies, commodities and stocks move like they do. So far he’s discovered it’s often in a way you least expect. To have Callum’s thoughts and insights on the current state of the currency, commodities and stock markets delivered straight to your inbox, take out a free subscription to The Daily Reckoning here.

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