REH - Reece Limited

[divs4ever]

Yeah, I was surprised it fell so much, no matter, I am sure it will continue to grow and generate decent returns. Been a long term hold for me for about 8 years. I think it was one of the first businesses I convinced my self to pay what seemed like a high price, but the quality was obvious.

i suspect the market is factoring in a construction downturn ( at least in buildings )

RWC fell more than 2% today as well

 

[galumay]

Fascinating insight into REH's business model and success from FBU CEO explaining failure of Tradelink. Video via @MayneReport

 

[Dona Ferentes]

the replacement market, then renovation, new build. 2.03 "and killed it."

 

[Dona Ferentes]

the replacement market, then renovation, new build. 2.03 and killed it.

and from a fund manager that focuses on ex top50 companies (and recently trimmed their REH holding)

Orange => no index inclusion
Blue => Small Ordinaries
Grey => Midcap 50

 

[Dona Ferentes]

and down 7 percent. $24.60

Trading Update Q1FY25
• Softness in housing markets continues
• ANZ revenue broadly flat YoY with underlying volumes softening on the same period last year. Sales supported by recent bolt-on M&A activity.
• US revenue -6.5% (USD) YoY reflecting lower volumes, deflation in select categories and adverse weather conditions.
• Lead indicators remain challenging in both regions - not expecting significant change to demand setting in first half.
• Continue to invest in organic growth through the cycle to build a better business.
• Anticipate HY25 Adjusted EBIT in the range of A$300m - $320m.

 

[galumay]

Probably a good entry point for someone wanting to get in, market selling off on short term sentiment. Similar to PWH recently. Often the only time you get a chance with high quality businesses.