Wattyl Limited

We should re-phrase this, we suppose, but investors have been trying to pick the bottom of Wattyl for more than a year. None of them have so far been correct. From a PER point of view it's cheap, but continuing problems both within the building material supplier - industrial action and higher raw materials costs - and outside it have seen its share price continue to trend lower. In the light of the expectations of continuing softness in the construction industry, we even abandoned our Accumulate recommendation (issue 66 - $2.84) in 16 January's daily e-mail. It's not down far from that now, with the stock seeming to have found some sort of a short-term bottom. In the meantime, Wattyl has broken some bad news, saying its full year result will be 'close to' the last year's. With this sort of chat about the result being 'close to' the previous year's, it remains a HOLD.