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November 11, 2009
PPC pushes pricing power
JOHANNESBURG - Earnings plunged, the dividend is down, volumes have fallen and management is playing it safe by holding back more cash than last year. This, however, doesn't tell the full story of PPC (JSE:PPC).
The construction company's free cash flow (ie, the cash left after all the operational needs have been met) points to a rebound if it maintains volumes and margins. This was up 5% to R1.7bn, or R3.47 per share. This means PPC shares are trading just less than ten times the free cash flow.
Posted by StaffWriter at November 11, 2009 10:17 AM