# GWA - GWA Group



## 2BAD4U (14 January 2009)

GWA International are behind some well known brands in Australia, these include:

Caroma Dorf
Dux
Gainsborough
Rover
Sebel

Westpac Broking describe the growth as below averge and a current dividend yield of about 6%.

I hold shares in GWT and looking long term for them to ride the housing market recovery (whenever that may be).  Would like others thoughts on this company.

Cheers


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## tinhat (19 December 2012)

I put this onto my watch list a few days and just checked back today. It has taken off.


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## alonso (19 December 2012)

Needs a take-off in building & reno before it reaches cruising altitude. No sign of either yet.


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## tinhat (13 February 2013)

I'm really scratching my head over the solid run GWA is having. I just can't see how the fundamentals nor the industry outlook for building and renovation can justify the run-up it is having.


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## skc (13 February 2013)

tinhat said:


> I'm really scratching my head over the solid run GWA is having. I just can't see how the fundamentals nor the industry outlook for building and renovation can justify the run-up it is having.




They did announce better conditions back in Dec. But yes share price is well ahead of earnings but that's the story of 2013 so far. What they report next week would matter little, but outlook statements on the company and the market would be most important.

BLD still reported a net loss this morning but it didn't stop them rising 60% from June lows. And look how quickly HIL recovered from its report. 

The name of the game these days is called buy first and verify assumptions later... It is not a market most suitable for value investors unless they are also good macro / top-down type punters. 

I'd keep an eye on CRZ and GFF and see if they get bought back up by the close.


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## tinhat (25 February 2013)

An exceptionally uninspiring half year results report.

I simply cannot believe that the covering letter to the ASX on both the financial results report and the investor presentation and the directors' report is typed in Comic Sans - a font that was specifically designed to be used in a children's book. But anyway...

The results only reinforce my earlier comments in this thread as to why the share price has run up so hard. Revenue is down, earnings are down, earnings margin is down, profit is down, dividend is down. The investor presentation trumpets that "high dividend payout ratio maintained". Yikes.

I am still wondering why the share price ran up as it did before the report came out. Is the flight to yield getting a bit over-done? Are people just looking at the dividend yield of the previous year and jumping on anything that looks good (jumping into dividend traps?). With a negative to poor earnings growth outlook, a PE of 19 propped up by a near 100% dividend payout ratio, I am starting to wonder whether the market is underpricing risk. Or is the next property boom just around the corner?

I am starting to wonder whether fund managers are having to scrape the barrel to find stocks that fit into their income performance targets? Actually, I'm just confused.


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## Gringotts Bank (2 August 2013)

Cup and handle.


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## skyQuake (3 February 2015)

I just noticed that this ASX 200 major has been using COMIC SANS in all its major announcements. 

How have they not been kicked out of the all ords yet


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## skc (3 February 2015)

skyQuake said:


> I just noticed that this ASX 200 major has been using COMIC SANS in all its major announcements.
> 
> How have they not been kicked out of the all ords yet




Lol. You just can't take them seriously with that font!


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## VSntchr (3 February 2015)

skc said:


> Lol. You just can't take them seriously with that font!




What is your problems SIRS


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## skc (17 February 2015)

skc said:


> Lol. You just can't take them seriously with that font!




Stock being punished on today's report (no doubt due to the font used rather than the contents of the report).


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## VSntchr (17 February 2015)

I'm struggling to understand the guidance for the trading EBIT.
At the AGM they said $85m but would need to be revisited due to the divestments.

Now they are saying its $70m (or is that $61.5m?)... Not sure whether this is essentially a downgrade or just that the accounts have actually been completed and this is in-line with guidance at the AGM..the market would lead one to think that its a pretty big downgrade so I'm leaning that way.

Also, the market may have hoped for more progress on the capital return, or perhaps a return to interim div?

Almost had a trade this morning but missed it...although it crashed back fairly quickly.


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## notting (17 February 2015)

I saw the font and shorted it immediately, thanks for the heads up.


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## skc (17 February 2015)

VSntchr said:


> I'm struggling to understand the guidance for the trading EBIT.
> At the AGM they said $85m but would need to be revisited due to the divestments.
> 
> Now they are saying its $70m (or is that $61.5m?)... Not sure whether this is essentially a downgrade or just that the accounts have actually been completed and this is in-line with guidance at the AGM..the market would lead one to think that its a pretty big downgrade so I'm leaning that way.
> ...




According to MQG...



> GWA confirmed at its AGM solid Q1 trading and that it remains on track for a FY15 EBIT of $85m. This forecast included a full year of Dux and Brivis EBIT.  Exluding these businesses the full year outlook has been refined to "around $70m" in EBIT.


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## VSntchr (17 February 2015)

skc said:


> According to MQG...




Ok so the like-for-like earnings is downgraded and would be $85m down to $70m...think I needed an extra coffee this morning 
Essentially they will earn $61.5m taking into account the divestments and assosciated corp charges.


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## galumay (17 February 2015)

skc said:


> Lol. You just can't take them seriously with that font!




Its one of my metrics for FA, anything in comic sans and they are straight off the watchlist. Should be a capital punishment offence.


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## just_jay (26 February 2019)

for my own reference.


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## Trav. (1 November 2019)

My first entry was a bit premature but GWA found some support at $2.80 (29/10) and bouncing back in the last few sessions. I have taken another position today and hopefully get it right this time.

Looking for a bounce back up into the 3.2- 3.4 region.


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## Trav. (18 November 2019)

GWA continues to have a good run and closed @ $3.21 up 0.6% when XAO down -0.39%. 

I am still holding and happy too for a wee bit more ( entering target area mentioned in previous post) for that  (insert rabbit here instead of beaver) hunting pursuit.


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## Trav. (28 November 2019)

I have decided to close my position today as it had reached my target and I was happy with that.

12% gain on trade so another Rabbit for the system !!


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## Trav. (1 December 2019)

To continue with my volume stopping research GWA come up as a Short candidate which is something that I dont normally look at so it might be worthwhile to have a look at both ( Volume and Shorting)

As marked up on chart overall trend is down. Short term rise during November then spike in volume stopping rise....

This is where you could guess that I dumped my position and caused excess supply  but I sold on the 28th and volume circled was on the 27th so not me after all....

2.8 million shares traded @ ~ 3.40 is some pretty big turnover so was it the smart players ? who knows and that probably is the challenge to not get caught by these guys.

Thoguhts ???


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## finicky (23 November 2022)

Might be a decent conservative way to _sit out_ a market crash rather than just cash?
Good franked dividend and improving since the Wuhan setback.
Chart's recently off time honoured 1.75 level

Not Held

All Data monthly


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## InsvestoBoy (23 November 2022)

finicky said:


> Might be a decent conservative way to _sit out_ a market crash rather than just cash?
> Good franked dividend and improving since the Wuhan setback.
> Chart's recently off time honoured 1.75 level
> 
> ...




According to TradingView


> GWA Group Ltd. engages in the sale of water solutions including vitreous china toilet suites, basins, plastic cisterns, taps and showers, baths, kitchen sinks, laundry tubs, domestic water control valves, smart products and bathroom accessories. The company was founded in 1989 and headquartered in Pinkenba, Australia.




Why do you think a business like this would be a good place to ride out a crash? From the chart you posted it seems to have plenty of downside beta to the market but no upside beta at all?


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## finicky (23 November 2022)

@InsvestoBoy I was thinking vaguely along the lines of GWA selling essentials, refurbishing flood damaged homes, and noted that even in our worst bear markets in the history of the company the price pulled up around 1.75. Maybe a lot of negativity is already accounted for in the s.p and as said, the franked div is attractive. I don't think of abstract things like beta, alpha ..
Also a newsletter writer that I subscribe to says he's close to issuing a buy rec to subscribers - Greg Canavan, and he's been pretty cautious lately.

Not Held


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## InsvestoBoy (23 November 2022)

finicky said:


> @InsvestoBoy I was thinking vaguely along the lines of GWA selling essentials, refurbishing flood damaged homes, and noted that even in our worst bear markets in the history of the company the price pulled up around 1.75. Maybe a lot of negativity is already accounted for in the s.p and as said, the franked div is attractive. I don't think of abstract things like beta, alpha ..
> Also a newsletter writer that I subscribe to says he's close to issuing a buy rec to subscribers - Greg Canavan, and he's been pretty cautious lately.
> 
> Not Held




Fair enough.

The total return chart looks friendlier than the one you posted, I guess they pay out a lot in dividends rather than retaining/reinvesting (nothing wrong with that unless you ask @galumay ).


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