Forum Archive Index - February 2004

["Pat Fields" <pat_fields@hotmail.com>]

Hi Snoopy

>Now let's say you are an income investor in Australia.   Where do you put 
>your money?    The prospects of CSR, Smorgon and Onesteel might be expected 
>to decline with the building boom cooling off.

I was interested in your comment regarding the relationship between ONE and 
the building boom cooling off.  I actually hold STU and have been wondering 
the effects of the downturn in the building sector on the company.

STU is a major supplier to the commercial and infrastructural building 
sector.  Assuminng that the residential property sector does turn down 
within the next few months, I guess the effects on commercial property would 
probably be less dramatic... and would probably have no bearing on major 
infrastructure projects where STU (or ONE, for that matter) operates.  In 
fact, given the type of interventionist government we currently have and the 
fiscal surpluses, I wouldn't doubt that if there were a general economic 
downturn (which is likely to happen in parallel to any residential property 
crash) that the lefties would push the fiscal accelerator and spend on big 
projects thus benefiting the likes of STU....  I would like to be proven 
wrong so that I sell STU in the short term with more confidence :-)       
What's your views?

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