Good year ahead

Finweek English Edition - - MARKET PLACE -

Chick­ens have been in the news again with Julius Malema sug­gest­ing a 50% im­port tar­iff. But that’ll never fly. As­tral has also been cau­tion­ing that the pro­posed cuts by Eskom on non-pay­ing mu­nic­i­pal­i­ties will hit it hard. While it pays for its elec­tric­ity on time, the mu­nic­i­pal­i­ties are not pay­ing Eskom. Power cuts will hit this com­pany in some op­er­a­tional ar­eas but both these sto­ries are just noise, and As­tral has started the new year trad­ing up at 52-week highs. The real story here is that the chicken pro­duc­ers should have a bet­ter 2017 as re­turn­ing rains will see maize prices go­ing down, which means costs will be lower for them. My pre­ferred pick in the space is Quan­tum Foods or As­tral.

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