By Alec Hogg
When you’ve been observing the business scene for a while, some things become rather transparent. A flood of new listings signals the end of the stock market’s bull run. Owners don’t take on responsibilities of going public unless they are offered an irresistible price. Draw a similar conclusion when managers of already listed entities raise cash through rights issues.
Another dead giveaway is when you see a business offering to “merge” with a competitor. Public companies with overvalued stock can sometimes pay too much for takeover targets. But unlisted companies don’t have that currency. So seeing privately owned Afrisam’s “merger” proposal to PPC sends a clear message. After the slide caused by boardroom ructions, PPC shares are now cheap. Dirt cheap. Whether or not Afrisam succeeds, those buying into PPC today are likely to be smiling tomorrow.
Yesterday’s top stories:
Herman Mashaba: How to put SA’s 8.3m unemployed to work
Brilliant analysis: If US Shale passes endurance test, lower oil prices here to stay
Geoff Blount: JSE listed companies are average – and here’s the proof
Lucy Kellaway: How to flirt your way up the corporate ladder
Allon Raiz: You need to risk failure in order to succeed
