GWA - GWA Group

[Trav.]

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 ???

 

[finicky]

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

 

[InsvestoBoy]

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
View attachment 149626

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?

 

[finicky]

@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

 

[InsvestoBoy]

@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 ).

 

[aus_trader]

Just purchased GWA shares for Speculative Stock Portfolio, purchase information in that thread. Further reasons of investing are..

· Diversified business segments: GWA Group operates in the bathroom & kitchens, door & access systems, and laundry segments, providing a diverse range of products and services to its customers.

· Strong market presence: The company has a strong market presence in Australia and New Zealand and has established itself as a leading provider of building products in these regions.

· History of growth: GWA Group has a history of steady revenue growth and profitability, indicating a well-managed and successful business.

· Focus on Australian and New Zealand markets: The company's focus on the Australian and New Zealand markets provides a clear strategy and reduces potential risks associated with entering new or international markets.

· Experienced management: GWA Group's management team has extensive experience in the building products sector, providing strong leadership and a deep understanding of the industry.

 

[divs4ever]

Just purchased GWA shares for Speculative Stock Portfolio, purchase information in that thread. Further reasons of investing are..

· Diversified business segments: GWA Group operates in the bathroom & kitchens, door & access systems, and laundry segments, providing a diverse range of products and services to its customers.

· Strong market presence: The company has a strong market presence in Australia and New Zealand and has established itself as a leading provider of building products in these regions.

· History of growth: GWA Group has a history of steady revenue growth and profitability, indicating a well-managed and successful business.

· Focus on Australian and New Zealand markets: The company's focus on the Australian and New Zealand markets provides a clear strategy and reduces potential risks associated with entering new or international markets.

· Experienced management: GWA Group's management team has extensive experience in the building products sector, providing strong leadership and a deep understanding of the industry.

i keep on ( so far ) bypassing GWA , i hold some stocks that NOW rival GWA ( they didn't when i bought in )

and those companies gave me exposure to the 'home renovator ' trend

but given rising interest rates and the slowing of house rice increases has that 'home renovator ' trend subsided , or just paused ( with more folks looking to improve the houses/buildings they have , rather than up-sizing/downsizing

interesting

good luck

 

[aus_trader]

i keep on ( so far ) bypassing GWA , i hold some stocks that NOW rival GWA ( they didn't when i bought in )

and those companies gave me exposure to the 'home renovator ' trend

but given rising interest rates and the slowing of house rice increases has that 'home renovator ' trend subsided , or just paused ( with more folks looking to improve the houses/buildings they have , rather than up-sizing/downsizing

interesting

good luck

Good on you @divs4ever, it's always good to get into early trends.

One of the reasons that I bought GWA is that it will do OK regardless of booming property prices. Even if there is a slow-down in the house prices and 'home-renovator' trend, any new construction and existing home upgrades are likely to benefit GWA. We are talking necessities such as kitchen sink or bathroom ware...

 

[divs4ever]

apart from buying JYC just under 36 cents ( in 2013 )

the companies i invested in spotted this trend and dragged me along ( on their coat-tails )

BTW i bought JYC on their WA exposure ( from memory they were mainly known for caravans back then , bedding was a secondary business )

now new unit/new homes might face severe pressure near-term , but will that make more improve the existing buildings ??

( much easier to borrow $100K on a building you already own or have mostly paid down )

i will be watching for signs of families consolidating ( young adults returning to the family home , or granny flats being added for the seniors )

another trend to watch for is , will the international students start return in large numbers ( boosting multi-occupant rentals )

particularly i am watching to see if the Chinese students start studying elsewhere ( since politicians are talking up a China conflict )

 

[finicky]

Strangely persistent sells leading into Half Year reporting date, Feb 20.
Bit inclined to call the bluff and buy a few as looks quite undervalued to me and is a meat and potatoes stock the like of which I'm attracted to lately - sick of my non earning specs.
8 years median ROE of about 15%, fy22 book value = 1.15, steady earner, rock solid share issuance, good ff yield.

Not Held

Daily

 

[rnr]

"Bit inclined to call the bluff and buy a few as looks quite undervalued to me and is a meat and potatoes stock the like of which I'm attracted to lately....."

That's definitely an interesting thought @finicky.

 

[aus_trader]

I don't always get time to post in the respective stock threads, but always try and put in a post in the spec portfolio when a buy or a sell happens.

So, unfortunately GWA has taken a dive, and being a trading portfolio, it was sold of the speculative portfolio. I have also taken note of other trades that I would have taken lately and suffice to say they have also gone to sh#t ?. So not a good trading environment for me at the moment !

 

[finicky]

Seems ok l thought although outlook is for income from repair and renovation to trend down over the next few years and apparently that segment accounts for 60% of ANZ revenue.
Nice 6c franked dividend coming up (down from 7c 1HFY22)
Rising interest rates and more inflation aren't gonna help.
Normalised ROFE (same as ROE?) 16.5% (down from 17.5% pcp)
Freight and warehousing costing more
They have some ability to pass on costs as they say they were able to apply a 5% increase in pricing across ANZ products in July.

Anyway, price down near long term support level so risked a bid for 3.000 @ 1.80 for an enduring hold as a dividend stock.

 

[finicky]

Ex dividend today - 6c. Has gapped below all time major lows unless you go back to primeval times. Lower than Wuhan low, lower than GFC, lower than 2000 Tech crash. Builders going broke, new housing starts down, higher interest rates to continue, talk of tapped out consumer. So doing the George opposite and bid in for 2,000 more @ 1.71. Straw hats in winter type concept.
Honest business compared to gold mines - toilets and sinks

Held

All Data Daily

 

[finicky]

Tacked on 2,000 at end of trading @ 1.62
Impulse buy as trading was closing at intraday low of 1.615 and there is no sign of the collapse ending.
Breach of multi-year major lows confirmed; have to go back to 1996 for this price.
Maybe it's seeing a housing rout?

Daily

 

[finicky]

GWA @ 2.06

Up 7% at luncheon on mixed FY23 results - excluding 'significant items' which negatively impacted FY22, NPAT and margin are down for this year FY23 but operating cashflow has doubled. Reported NPAT up 22.7%. A 7c final dividend declared.
Flat sounding guidance for FY24 - residential demand should be lower but commercial higher.

Held

 

[finicky]

Ex dividend today. Dividend is 7c but share price down more than double the div - down16c.
FY23 result and FY24 guidance looked acceptable to me.

Held

 

[divs4ever]

Ex dividend today. Dividend is 7c but share price down more than double the div - down16c.
FY23 result and FY24 guidance looked acceptable to me.

Held

probably a reaction to the Evergrande bankruptcy filing and feared contagion throughout the construction industry

however cheers

i will start watching this it may come down to a compelling price ( on economic worries )

 

[finicky]

Oh no .. no .. Roger Montgomery is backing (spruiking) GWA ..

We recently wrote about Australia’s residential construction shortfall which will inevitably support prices for high-density residential. In turn, this will lead to another construction boom, and that should translate into another boom in demand for GWA’s products.

GWA group – Finding value in the midst of share price uncertainty

Back in February 2020, and just before COVID-19 sent the world into a tailspin, GWA (ASX:GWA) shares were on a high, trading at nearly $4 each. Today, shares in the small cap building materials company and distributor of Caroma, Clark and Dorf bathroom and kitchen accessories, tapware and...

rogermontgomery.com

 

[finicky]

Seems a good H1 report for GWA, price up 6%
All measures mentioned up on pcp except revenue which is only down 0.5%
Rather steady ROE stock with a pretty good and reliable ff dividend.

Held