Alec Hogg: Next move after Aus Govt blocks WBHO deal

WBHO stands out like a sore thumb in the strongly performing BizNews Share portfolio: it is the only stock that currently trades below our entry level. The price fell sharply again this week on news Australia's government blocked a proposed acquisition of WBHO's Aus subsidiary Probuild "on grounds of national security"..Also read: Alec Hogg: WhatsApp opens doors for competitors.Our original purchase of WBHO for the portfolio was based on the classic business principle of excess profits accruing to the last man standing when a previously hammered industry rebounds. The implosion of SA's construction sector is well documented. Outside of WBHO, there's now little left to talk of..___STEADY_PAYWALL___.The purchase of WBHO shares was also based on SA president Cyril Ramaphosa's promise to make infrastructure invesment his driver to resuscitate the sluggish economy. After destruction wrought by Covid-19 – and unemployment now around 50% – this has become even more of an imperative..Also read: Alec Hogg: Drawing inspiration from those around us.The Australian government's reaction to a Chinese bid for Probuild, however, has given even WBHO's biggest supporters pause. Whispers about the on-off status of a proposed deal (first disclosed in November) caused a share price whipsaw evident above. As Probuild delivers more than half WBHO's revenues, the deal was transformative. For long-term investors, however, the appeal of a WBHO share price in the R80s is obvious. We aren't selling. Neither should you..TO LISTEN….Latest audio on BizNews Radio.…..(click on the link to access).Meet Cathie Wood – superstar fund manager who loves TeslaWill the rich be able to jump SA's Covid-19 vaccine queue? Flash Briefing: SA Covid-19 vaccines; local refineries shut until 2022What it's like being bullied by Santam – SA boutique hotel ownerSlash your tax bill, generate steady returns from renewable energy .TO WATCH….Plenty to choose from on the BizNews TV channel on Youtube including….Nine things you can do to make 2021 a better year

Alec Hogg: Next move after Aus Govt blocks WBHO deal

Related Stories

Meet Tshepo Mahloele – Big Capitec shareholder, ABSIP’s “CEO of the Decade” now accused by Holomisa as kingpin of corrupt network

PREMIUM: Making of a great editor – the George Palmer playbook

Premium – BizNews global portfolio: ASML joins – so does Adobe as Bull takes hold again

Alec Hogg: Helen Zille predicts SA choice will be DA or EFF