Will it re­cover?

Finweek English Edition - - MARKETPLACE SIMON SAYS -

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.

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