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.
for The Daily Reckoning Australia