On the back foot

Finweek English Edition - - SIMON SAYS -

The sorry story that is the PPC share price con­tin­ues as the stock traded just above R20, a level last seen back in 2004. The board­room prob­lems may have been re­solved, but lo­cal op­er­a­tions con­tinue to strug­gle with mod­er­ate de­mand, lots of com­pe­ti­tion and age­ing plants that re­ally put the com­pany on the back foot. The Afrisam merger may help a lit­tle but it doesn’t solve the prob­lems of im­ports and new kid on the block Sephaku Ce­ment. The Com­pe­ti­tion Com­mis­sion may also scrap the deal. Its African ex­pan­sion plans re­main on track, but th­ese new mar­kets that the com­pany is mov­ing into are go­ing to be very tough. In short, we can ex­pect more pres­sure on the share price un­til we start see­ing real ev­i­dence of im­prove­ments in rev­enue and more im­por­tantly prof­its.

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