Will it recover?
Adcorp released a horror update late on 5 May, with a headline loss per share of between 23c and 33c expected. This after HEPS of 77.5c at mid-year and almost 300c for the last financial year. The loss is blamed on changes to South African labour laws, cutbacks on oil and gas projects as well as currency losses. All in all, a nasty update. The share had been up above 3 000c as recently as 2015 and is now just above 1 300c. The concern is that none of these issues are short term or one-off in nature (except maybe currency) and suggest things are just going to get tougher for the group. I had long liked the share but it never seemed to do anything, so I fortunately took it off my watch list. Holders should consider exiting.