NO LONGER A JSE DARLING
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.