Finweek English Edition - - SIMON SAYS -

PPC was once one of the dar­lings of the JSE as a high and con­sis­tent div­i­dend payer, but in the last year it has halved in value. This is, in part, due to the board­room bust-up we saw last year, but there has to be more to the price col­lapse than just board­room tus­sles. It op­er­ates in the con­struc­tion space, which is se­verely un­der pres­sure. In re­cent years it has also seen a new com­peti­tor come into the lo­cal mar­ket in the form of Sephaku, which is run­ning newer and hence cheaper plants. This has put pres­sure on the lo­cal op­er­a­tions and the African ex­pan­sion is still a few years off, and un­proven thus far, so we can ex­pect the stock to re­main un­der pres­sure.

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