The stock analysts at SGZ-Bank recommend this week that the share of the building material supplier Heidelberg Cement (WKN 604 700) for sale. Despite a still poor German construction industry - is the domestic sales increased only slightly accordingly - that society can increase its sales in the first half by 10% to 3.64 billion marks for the full year and expect growth of about 6 %.
Thus, I continue the trend of recent years had made in which Heidelberg Cement, despite unfavorable conditions a steady revenue and earnings growth. These relatively positive development was due primarily to the strong regional diversification of the business. While were built because of the critical situation in East Germany, especially in the building materials sector like cement, where significant over-capacity site consolidations and restructuring of the sales were necessary to the business in Western Europe and North America was a very good year. Accordingly, the management put on a further expansion in promising markets.
In addition to building a new plant in the U.S., which would cost as now the biggest single investment about 250 million dollars, would complement involvement in future growth markets of Southeast Asia as well as Romania and Poland's business portfolio. As part of the general market recovery, have the shares of Heidelberger cement AG removed from their annual lows and back to a level above the rates of the year. The support zone formed during the downturn by 140 DM is now a resistance that must first be overcome. The stock specialists SGZ-Bank indicate that the share ownership with a P / E of 13.5 based on the earnings estimates for 1999, a moderate rating, which make them interesting as a long-term investment. In addition, it was likely that the construction sector to recover in the medium term and also contribute to the positive momentum will change in government.
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