PPC

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That is a very good point actually, they promised juicy details of the restructuring by December last year and instead it was the same boring update. Looking at the daily chart, apart from todays low, it is still following an upward trend...tomorrow will tell if the cycle will continue or break below the line. Just my observation.

 

Only reason I got interested in the share is because of the first hand experience I have had with how they took advantage of the covid situation in order to hike up prices (seeing as though they also have a monopoly on the market right now). Again, this is just my view and I kind of see it as a temporary play.

 

Thanks for the insight.

It's been a good week for PPC 

I think that's the whole point , shareholders were expecting more clarity by now and haven't been given that in this sens . This sens just repeats previous sens with some deadlines to the same uncertainties (which have not been resolved)
In the interest of disclosure: I completely got out of PPC in the last week, due to the uncertainty and overhang of the looming rights issue. Thought I could put that cash to better use.
 

That is a very good point actually, they promised juicy details of the restructuring by December last year and instead it was the same boring update. Looking at the daily chart, apart from todays low, it is still following an upward trend...tomorrow will tell if the cycle will continue or break below the line. Just my observation.

Only reason I got interested in the share is because of the first hand experience I have had with how they took advantage of the covid situation in order to hike up prices (seeing as though they also have a monopoly on the market right now). Again, this is just my view and I kind of see it as a temporary play.

Thanks for the insight.

A seemingly dramatic reaction the the latest sens. It was just an update on the restructuring and refinancing, yet share price has tanked more than 13% into a volatility auction. 

I think that's the whole point , shareholders were expecting more clarity by now and haven't been given that in this sens . This sens just repeats previous sens with some deadlines to the same uncertainties (which have not been resolved)
In the interest of disclosure: I completely got out of PPC in the last week, due to the uncertainty and overhang of the looming rights issue. Thought I could put that cash to better use.
 

A seemingly dramatic reaction the the latest sens. It was just an update on the restructuring and refinancing, yet share price has tanked more than 13% into a volatility auction. 

There have been a few wild rides with this share lately. Just received confirmation that they implementing another price increase (2.5-5%) across the board as of 1 February. These guys have balls, in my view most of their previous price hikes were not justified last year as they merely took advantage of the situation. 

They must be confident that they will continue to have majority market share, otherwise they are just pricing themselves out. Greed or a well calculated tactic?

Edited by Leadingedge, 18 January 2021 - 10:36 AM.

Wonder if profit taking motivated to move funds to other potential big gainers...i am reducing my portfolio and adding to snh and asc. Will leave at least 30% here. Not sure how much legs there are here in the short term. Will add more after...

Much will depend on whether the rights issue is needed or not.

Looks like momentum is picking up now, holding thumbs that this lasts!

Very disappointing reaction to the trading statement. Seems like this was factored in to the impressive run over the last month.

Watching this closely..100% up. Would ppc benefit from gov infrastructure projects and by when would that come through.

I have been working this share for the last two weeks and it has been an interesting ride. The sudden drop down to 74c caught me by surprise this afternoon, followed by fairly erratic jumps between 75c and 82c. Might top up again if the downtrend continues tomorrow.

"PPC has also started to experience the positive impact of increased infrastructure spending, which it hopes will carry the strong demand once retail sales volumes return to more normalised levels."

PPC and others will definitely gain from any large infrastructure projects, but it does take time to get the ball rolling on such projects. What scares me is that there is already a directive out from the Department of Human Settlements to start cutting funding to government housing projects, which means we could see a lot of housing projects/tenders being cancelled. They are blaming it on the economic crisis, but we all know full well that all this means is that there are only crumbs left in the cookie jar, after the decades of mass looting. Whether this will impact road projects as well, I can't say right now...one can only assume though.

My view on PPC is more short term at the moment, due mainly to the interesting scenario created for them by the pandemic. They suffered along with everyone else during hard lockdown but for a few months there was no importing of cement from foreign suppliers either. This caused an increase in demand when the economy started opening up (infrastructure projects were some of the first to get going again). What I still can't explain is how the competition fell off the bus somewhere and suddenly only PPC was available, and at a premium to say the least! The operational update released on 11 November is worth browsing through.

Two things to watch for now is the interim results due early December (recent operational update highlighted the positive aspects). The second thing to watch is the restructuring/refinancing project that is currently underway. They have indicated that there should be news on this before the end of the year...or possibly with the interim results.

My 2 cents.

PPC making a small rally ...up to 66c...hoping the flood gates will open soon

Was just typing a message to ask if you managed to buy around the 44c mark? I eventually bit the bullet, and after two days managed to get my quota at an average of 53c. Not a bad run so far, but to be honest I was expecting a bit more of a run today. I had also assumed that they would release interim results next week, but according to yesterdays statement this will only happen early December.

The reason I decided to jump on board was due to the very same information that was in the operational update they put out yesterday afternoon. There was a snippet of this info in the financial statements released last month. Anyone in the building industry will be able to tell you just how much they have hiked the price of their cement over the last few months (coincidentally when demand shot up).

This is by no means a miracle cure for them, but will surely be a nice temporary boost. 

The restructuring and refinancing project is also something to keep an eye on in the short term. Debt is a major problem for them, so any positive news on that front should be good for the share price as well.

Just my 2 cents here, this is by no means any form of trading advice and is merely my thoughts and opinions.

Im looking to purchase a few shares next week, but the timing is going to prove tricky to get right. I have been waiting to see if it will fall lower (like I expect it should) but the US elections are messing with the markets and every day is a gamble...next week is most likely going to be just as interesting.

Interim results are due in two weeks and there has been no trading statement yet...this can be both good and bad the way I see it.

Just my 2 cents, take it with a bag of salt.

Hi All...see there hasnt been any activity on PPC for a while ....just hit 44c....do you think we will have an upswing soon ?

Net profit attributable to PPC shareholders is expected to increase by 55% -
65%, compared with the R93 million achieved for prior comparable period.

PPC group EBITDA from operations is expected to decline by 5% - 12% compared
with the previous period. Group EBITDA has been negatively impacted by costs
related to corporate action, restructuring and separation costs which was
communicated previously. Excluding this impact and the fluctuation in
exchange rates, group EBITDA would have increased by 0% - 3%. In addition,
the plant in DRC was commissioned during the last quarter of calendar year
2017, as well as the plant in Ethiopia in the first quarter of the 2018
calendar year. Their results for financial year 2018 have reduced net profit
as they are in a ramp up phase.

In the results to March 2018, the DRC market continued to face uncertainty
driven by political instability, lower cement demand and subdued selling
prices. Furthermore, the competitive landscape remains challenging due to
production capacity that is higher than market demand. The delayed elections
have created uncertainty in the economy and most of the infrastructural
projects have been put on hold or they are slow to come to market. As a result
of these factors, management undertook an impairment assessment.

Following the impairment assessment review, the recoverable amount of the DRC
operation was considered lower than the current carrying value and an
impairment of R166 million (US$14 million) was charged against property,
plant and equipment for the year ended March 2018.

Basic earnings per share is expected to increase by between 20% and 30%
(between 9.6 cents and 10.4 cents). Headline earnings per share is expected
to increase by between 110% and 120% (between 14.7 cents and 15.4 cents) for
the year ended 31 March 2018, compared to the previously reported period
ended 31 March 2017.

Summary of earnings:

Earnings in cents          Year ended         Year ended         % change
                           March 2018         March 2017
Basic EPS                  9.6 – 10.4              8             20 – 30%
Basic HEPS                14.7 – 15.4              7            110 - 120%
WANS (millions)               1,510              1,137              33%

The group net debt levels reduced significantly from that reported at the
group’s interim results released in November 2017. Furthermore, the group has
also generated positive free cash flows after investing activities, compared
with a significant outflow in the prior comparable period.
The information in this trading statement has not been reviewed or reported
on by the Company’s external auditors.

Interesting SENS today guys

I have been holding these for quite some time

I read the SENS and didn't think it was that catastrophic, but market reaction disagreed with me. Down 10%

Your thoughts?