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Is PPC moving into atractive PE buying range?

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Blik
Super Contributor
PPC has dropped down over the last couple of months from just above 3300 to around 2950 at a PE of just greater than 11. Looking at their complete PE historical record, a PE approaching 10 would, at face value, appear to be a good buy (or is that a goodbye?). I assume the expected dip in the Chinese economy will have some impact on PPC. Any forum views on this share - Barry, Simon, Werner, John?
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6 REPLIES 6
SKALA
Super Contributor
Good question; on weekly chart looks like it could go lower to 28.00
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Not applicable
I have also been looking at PPC and trying to find reasons to buy it. I took the daily PE for the last 5 years and averaged it out to 17. At 11 PE, this is way below the average. Also if you want to keep for the long term, the div is decent and provides a good backup if the price moves further down.
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kwagga
Super Contributor
I'd wait for results next year before terming this share cheap. I don't see massive new development around me, but I do see signs of economic growth piping down towards the end of the year. So who's buying all that cement ? Good company in a down cycle.omo
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Quakedog
Super Contributor
Chinese are gonna build big cement factory, so long term could be a downer.
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Blik
Super Contributor
Its a tricky one since it has only broken the 10 PE barrier a couple of times in the last 6 or 7 years, and moving towards that level it starts to look like good value. DY remains attractive above 5 as well. But rightly said a lot depends on their future earnings, and historical data doesnt always tell us everything - fundamentally or technically. I have a bit of PPC but will probably hang on and watch a bit closer for now. After watching the Buffet interview on Value, on Tickertalk, if you can accurately (within limit) value a share, then knowing when to get in and out is reasonably easy.
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barry_1
Super Contributor
One of my yearly favourites ,that has not exactly come to the party over the last couple of years.I think we shall have to wait till the demand for building picks up again.There is competition these days from Egyptians and French and they do not have the virtual monopoly they had in the past.As long as the general REGRESSION line points down I shall not buy as ,it is difficult to determine the bottom,otherwise it might be a case of;" Get in on the ground floor and out in the basement!"
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