Schaffer’s share price is on a roll. The share price surpassed the $10 mark this week on two very positive announcements.
The first positive announcement is that Schaffer recently received town planning approval for increasing the development size of their Jandakot property from 12 hectares to 39 hectares (or 390,000 square meters) for future industrial developments. Any future development will still be subject to various planning, environmental and infrastructure approvals. However, given comparable industrial land values of $200 per square meter, this is very positive news.
The second favourable news is that John Schaffer recently purchased 140,000 shares on-market at an average price of $9.80 per share. This is a cool $1.37 million endorsement from the Chairman.
In my opinion, there maybe a risk that the share price may pull back after rallying nearly 100% over the last 12 month (I don’t know and don’t speculate on short term share price movements). However, in the medium to long term, I believe there is more upside due to the increasing volumes and margins at Howe and potential multi-million property developments at North Coogee and the Jandakot properties.