Share Forum - Discuss JSE shares and join the Investor Challenge

There are 2 shares I am currently looking at

WSL
PPC

WSL looks like a good share, might be peeking at the moment from what I can see, and ya I know my terminology sucks, im just keen on doing some due diligence on my side to see if it is a worthwhile trade as it seems very volatile,

PPC - "seems" to have bottomed out, would it be a good buy at the moment, how does one determine whether or not PPC could end up being worth 12cents?

any input would be appreciated

new to the forum "Hello"

PPC you need to look at the rights issue, how much dilution is there on there NAV.

PPC’s FUNDING STRATEGY

The Board and the Executive Management of the Company have reviewed
the Company’s business plan and capital structure and are in the
process of implementing a funding strategy which incorporates a
capital raise to deal effectively with the impact of a continued
low-growth environment as well as the potential redemption of the
Notes and the strengthening of the balance sheet.

The Company intends to raise between R3 billion and R4 billion in
gross proceeds through a rights issue. PPC is in discussions with
various parties with respect to the potential underwriting of the
proposed rights issue. The Company will also consider such other
forms of equity capital raising as may be appropriate in light of
its position, market conditions and other factors.

The Board intends to announce further details regarding the proposed
rights issue on 14 June 2016, when it releases its results for the
financial year ended 31 March 2016, and to publish a shareholder
circular convening an extraordinary general meeting to approve the
required shareholder resolutions in order to implement the proposed
rights issue on or about 28 June 2016.

In the interim, and in order to address its commitments to the
noteholders, the Company has executed a credit approved term sheet
with its debt providers which summarises the terms and conditions on
which such debt providers will step in as guarantors to the
noteholders.

FURTHER CAUTIONARY ANNOUNCEMENT

Further to the cautionary announcement released on 23 May 2016 and
the information set out in this announcement, security holders are
advised to continue exercising caution when dealing in PPC
securities until a further announcement is published.

Any securities which will be offered will not be and have not been
registered under the US Securities Act of 1933 (“US Securities Act”)
and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements under the US Securities Act.

Thanks for the helpful replies guys

/waves

How much do you know about investing/trading or is this your first time out?

This is my first time out

My opinion:-
Wouldn't touch either of these shares
PPC specific - there are so many cement manufactures in Africa and also large imports from China. Our economy has stalled there are very few infrastructure developments in Africa (to my mind) to invest in any of the cement manufactures. When looking at the cement industry also look at the iron industry as all industrial sites/shopping centres require rebar for building/shuttering purposes and the iron ore industry is also struggling. PPC had its haydays when the soccer stadia were being built     

Very informative -> Thanks for the advice sounds solid

jaDEB -> sorry for my ignorance & I honestly dont expect people to spoon feed me stuff. I have to ask though...What the story of the rights issue? what does it? what does it imply?

Issue of shares offered at a special price by a company to its existing shareholders in proportion to their holding of old shares.

Nobody knows how much PPC may rebound, it might go up another 30%, it might also fall another 20%. I would be more inclined to look for businesses that will do well in the long term that are reasonably priced. I have never invested in PPC because I do not like the industry, it seems too much of a commodity product, and somebody with enough capital could start a cement plant. Look for businesses that have strong moats around them, and prehaps less cyclical than the building industry.

I bought PPC a few days ago, not much just gamble money, since they are massive and the dominant cement player, so when the economy recovers which it will then new developments will be build also remember the new City in Cape Town that going to be build. PPC, interesting stuff don't see growth any time this year, but I do see them making a turn it's a well managed company.

Bought PPC today in the Investor Challenge. Let's see what happens.

Well. That was a disaster 

Do not gamble with real money. You will loose believe you me.
Look at jadDEB. He lost big time over the years with his commodities and is only now having a lucky streak.
Bread has lost 20%+ in as many days as fingers I can stick in my nostril with PPC. Wow. Then he took a gamble on Spar with real money and lost out with 5% odd if not 15% in a few days.

Just stick with Index stocks and ETF's if you are not sure. On the long run, you will smile and not have to worry about single stocks and when to sell if they tank.

Most single stocks are cyclycle and it takes some intensive research to find the right ones that keep going up.