What Happened to CSR Ltd’s Share Price?
Shares in building products maker CSR Ltd [ASX:CSR] shot up today, gaining nearly 3% to extend October’s rally. Today’s price action pushes CSR’s year-to-date capital growth beyond 37%.
Why Did This Happen to CSR Shares?
Posting its half-year result today, CSR said net profit after tax jumped by 48% to $68.4 million. Earnings were higher across all of CSR’s divisions. Commentary from the company’s CFO Greg Barnes buoyed the market — he expects Australia’s housing boom to last at least two more years.
What Now for CSR Ltd?
CSR makes more money when more new homes are built. The company should benefit from a continued strong Aussie property market. Although after such a strong recent run, it’s worth remembering that construction is a highly cyclical industry…so if you own this stock, keep your eye on the economic headlines.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
Join Money Morning on Google+
The post Why the CSR Ltd Share Price Soared Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
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