Goverment Contracts

[JeanStocker]

I see the government is gonna be spending about R800 Billion if I'm correct into to developments and infrastructure, does anybody know if Calgro M3 is getting involved in any of this?

[#2]

Nah - it means very little to them. They are not infrastructure players - which is why they manage to perform so well. They have a simple business model. Buy land, build houses and sell to the working class. They need government, because government provides the security needed for the loans that the banks issue to the buyers. Without government intervention, the target market buyer would never qualify. A statistic that does matter, is the sheer backlog of affordable housing - and government's desire to build houses number in the millions.

[#3]

apologies, I have maybe oversimplified the business model - but my point is that I don't believe that state actually puts skin in the game, so to speak. Calgro isn't contracted by the state, they just use the state's guarantees - as I understand their model.

[SimonPB]

Skaap, you spot on with CGR ..
Other than CGR this sector is a mess, here an inforgraphic
http://blog.justonelap.com/jse-construction-sector

[klapka]

Interesting infographic Simon. A sector that filled a room can now be put into a suitcase. Our mining sector has gone the same way.