{"id":50903,"date":"2014-05-14T02:31:20","date_gmt":"2014-05-14T06:31:20","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=50903"},"modified":"2014-05-14T02:31:20","modified_gmt":"2014-05-14T06:31:20","slug":"why-csr-shares-got-crushed-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/14\/why-csr-shares-got-crushed-today\/","title":{"rendered":"Why CSR Shares Got Crushed Today"},"content":{"rendered":"<p>By <a href=\"http:\/\/ift.tt\/10cDh0v\" target=\"_blank\"><u>MoneyMorning.com.au<\/u><\/a><\/p>\n<h2>What Happened to CSR Shares?<\/h2>\n<p>\nShares in building products group <b>CSR Ltd [ASX:CSR]<\/b> fell by almost 5% today as the market digested the company\u2019s earnings for the year ending March 31 2014. CSR has endured a tough few weeks, with the shares down more than 13% from their recent peak.\n<\/p>\n<h2>Why Did this Happen to CSR Shares?<\/h2>\n<p>\nAt first glance it\u2019s hard to fathom why the stock got belted today. CSR reported a net profit (pre significant items) of $72 million, 143% more than what the company made the previous year. The company\u2019s full-year dividend of 10 cents per share is up 96% on the prior period. And managing director Rob Sindel gave an upbeat assessment of the outlook for Australia\u2019s construction market. So why the rout?<\/p>\n<p>Well, you\u2019ve got to remember what keeps share prices moving. Companies have to keep impressing investors. Stocks have to keep beating raised expectations to maintain an upward trajectory. And <strong>CSR shares<\/strong> have had a stellar run, rising from less than $2.00 this time last year to an April 2014 high of $3.86.<\/p>\n<p>Although this profit result came in ahead of what most share market analysts predicted, investors seem to have taken the view that the profit was already in the share price\u2026and so they have taken the opportunity to sell out of the stock.\n<\/p>\n<h2>What now for CSR Shares?<\/h2>\n<p>\nI don\u2019t think there\u2019s any reason for CSR shareholders to panic. The company is strongly leveraged to new housing starts, and the recent pick-up in activity seems to be spreading. Meanwhile, CSR is entering the digital age and will now offer an online sales platform. That\u2019s the kind of sales channel that more Aussie large-caps should embrace.<\/p>\n<p>That said, construction is a highly cyclical industry\u2026so if you own this stock, keep your eye on the economic headlines.\n<\/p>\n<p><strong>Tim Dohrmann<a href=\"http:\/\/ift.tt\/1doR2pO\">+<\/a><br \/>\n  Small-Cap Analyst, <em>Australian Small-Cap  Investigator<\/em><\/strong><\/p>\n<p><strong><a href=\"http:\/\/ift.tt\/141OQNu\" title=\"Join Money Morning on Google Plus -- and read about the things we can't always fit into our regular essays\"><u>Join Money Morning on Google+ <\/u><\/a><\/strong><\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/ift.tt\/RP5H48\"><img decoding=\"async\" src=\"http:\/\/ift.tt\/Nk9u5P\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/ift.tt\/RP5H4a\"><img decoding=\"async\" src=\"http:\/\/ift.tt\/1lwuKDe\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/ift.tt\/RP5H4c\"><img decoding=\"async\" src=\"http:\/\/ift.tt\/1lwuKDk\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/ift.tt\/RP5H4f\" height=\"1\" width=\"1\" \/><br \/>\nBy <a href=\"http:\/\/ift.tt\/10cDh0v\" target=\"_blank\"><u>MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By MoneyMorning.com.au What Happened to CSR Shares? Shares in building products group CSR Ltd [ASX:CSR] fell by almost 5% today as the market digested the company\u2019s earnings for the year ending March 31 2014. CSR has endured a tough few weeks, with the shares down more than 13% from their recent peak. Why Did this &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2014\/05\/14\/why-csr-shares-got-crushed-today\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Why CSR Shares Got Crushed Today&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50903","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=50903"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/50903\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=50903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=50903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=50903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}