PPC

[Parttimer]

Any thoughts on buying PPC at current levels for two year hold?

[Project_Directo]

if jacob decides not to continue with the infrastructure roll out you might have a bit of concrete in your boots , mate!!

[#3]

My feeling is that JZ is a populist & will continue building - COSATU needs the membership fees from the wekas, SACP needs the stadiums for its MAY day rallies. PPC looks really goos at these levels - Good dividend yields & good order book. Just being punished for the slow commissioning of its new plants. This is another GND - undervalued & poorly understood company OMO

[#4]

... and high debt which they switched from short term to long term. Better terms but they obviously expected to pay it off sooner and cannot.

[louisg]

Aren't they using the long term debt to build their new operations in the Western Cape?

[louisg]

IF they can increase their dividend by say 10% (last 10 years the dividend has compounded at 21% excluding generous SPECIAL dividends of 533c since 2001)for the next three payments, then at a 3050 price they will have a forward div yield of 7.6%. If you purchase PPC just before LDT, then one could get all three payments within about 12 months. 183c+50c+201c=434c. That's a forward div of 14.2%(tax free). Another way to look at it is that you subtract the first payment(183c) from the purchase price and you would have a forward INITIAL div yield of 8.8% compounding at whatever rate that they can grow earnings(assuming they keep the cover the same).PS Add about 1% to the purchase price to accommodate transaction costs. I'm looking to add to my position. omo

[Parttimer]

Thanks All, buy you beer in two years when I've made lots of money courtesy PPC

[Project_Directo]

PART time, you could always pop down to your local stockist buy loads of bags of the stuff, remmember it doesnt go off as long as you dont have kids who may need to meddle, store it for two years and sell it based on the escalating rate of concrete/cement in two years time, then you could buy us all a small case of puzza. if you dont believe me go to stats sa, check the indices for the last couple a years and bingo going forward!!