Bluescope has sold off from $19 (mid-year), to now be trading at $12.10. The stock was expensive and we’re now back in fair value range.
The outlook is uncertain as US and Asian steel spreads contract and lower steel prices negatively impact forward earnings.
Also, leading indicators for the domestic residential construction market are creating investor concerns.
We expect cautious outlook comments from the AGM trading update on Friday, 23 November.
Watch for buying interest to build above the $10.50 support level.