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%.
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.
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
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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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