PPC turnaround?

[sk_1]

I bought PPC at 2690 at beginning of month hoping for turnaround on the long term. The share has risen daily since then and I am hoping for a bit more upside. Am on a very close stoploss thought just in case this beast turns around and bites me

[doomsdayza]

Did a fundamental analysis based on (very conservative) cashflow projections and valued the share in the R55-60 range over a 3 year window period. Also bought to hold for long term and got in at 2683. Very attractive dividends.

[J12]

Just out of interest...What dividend growth assumptions are you using?

[doomsdayza]

PPC have had a very high dividend pay out ratio (~90%) over the past three years. Assuming earnings increase by ~10-13% a year dividends will increase by ~9-12% based on the div payout policy remaing in the 90% payout ratio region. My opinion only.

[#5]

Well from a technical analysis point of view this current rally is merely a return move after the support breakdown. Lower targets still in place, my target is R21.50. That would be the level to buy long term...

[barry_1]

Shapiro a trader with many years experience seems to think construction shares are the place to be now,see Moneyweb today.

[louisg]

If earnings increase 10-13% and they keep the same ratio, then the dividend will also increase by 10-13%. PPC is a serious cashcow. Bought at 2700. Long term buy. OMO

[doomsdayza]

ye louisg. that hit me later :)duh!