{"id":55628,"date":"2014-08-07T14:11:06","date_gmt":"2014-08-07T18:11:06","guid":{"rendered":"http:\/\/countingpips.com\/?p=55628"},"modified":"2014-08-07T14:11:06","modified_gmt":"2014-08-07T18:11:06","slug":"why-the-adelaide-brighton-ltd-share-price-slumped-today","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/why-the-adelaide-brighton-ltd-share-price-slumped-today\/","title":{"rendered":"Why the Adelaide Brighton Ltd Share Price Slumped Today"},"content":{"rendered":"
August 7, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

What Happened to Adelaide Brighton\u2019s Share Price?<\/h2>\n

Shares in cement maker Adelaide Brighton Ltd [ASX:ABC]<\/strong> fell by more than 4% today on heavy volume. The shares have retreated by nearly 22% in value since hitting an all-time high in February.<\/p>\n

Why Did This Happen to ABC Shares?<\/h2>\n

Yesterday Adelaide Brighton announced a push into the Queensland construction materials market, and shored up its position in its home state of South Australia.<\/p>\n

The company has bought two integrated aggregate and pre-mixed concrete businesses, in addition to the previously-announced acquisition of a quarry from Penrice Soda Holdings Ltd [ASX:PSH]<\/strong>, for a total of $174 million.<\/p>\n

All of this supports Adelaide Brighton\u2019s strategy of securing more downstream construction materials businesses.<\/p>\n

The market is viewing this as a defensive move for a company on the back foot, following a profit downgrade and a major contract loss earlier this year. <\/p>

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More importantly, this nixes any hope shareholders might have had of receiving a special dividend. That\u2019s why the share price has fallen today.<\/p>\n

What Now for Adelaide Brighton Ltd?<\/h2>\n

Investors shouldn\u2019t panic because of today\u2019s share price action. These acquisitions will help Adelaide Brighton meet rising demand for cement and other building materials. <\/p>\n

As long as housing construction and infrastructure development continue apace, Adelaide Brighton\u2019s future will stay rosy.<\/p>\n

Its products aren\u2019t very sexy, but Adelaide Brighton\u2019s long term track record of earnings growth speaks for itself.<\/p>\n

Cheers, Tim Dohrmann<\/strong>+<\/strong><\/a>
\nSmall-Cap Analyst, Australian Small-Cap Investigator<\/em><\/strong>
\nJoin Money Morning on Google+ <\/span><\/a><\/strong><\/p>\n

The post Why the Adelaide Brighton Ltd Share Price Slumped Today<\/a> appeared first on Stock Market News, Finance and Investments | Money Morning Australia<\/a>.<\/p>\n

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\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au What Happened to Adelaide Brighton\u2019s Share Price? Shares in cement maker Adelaide Brighton Ltd [ASX:ABC] fell by more than 4% today on heavy volume. The shares have retreated by nearly 22% in value since hitting an all-time high in February. Why Did This Happen to ABC Shares? Yesterday Adelaide Brighton announced a push […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-55628","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=55628"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/55628\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=55628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=55628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=55628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}