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dividend yield only works if the book actually stabilizes though, guppy makes a fair point but the temp staffing margins got hit hard last year and that's where adcorp makes its bread. easyequities folk are betting on a rebound but labour demand still looks patchy, could be a long wait for those employment numbers.
temp staffing is cyclical and we're still in a tough spot with load-shedding killing productivity, so client spend stays cautious. but the dividend yield at current levels is decent cushion if you can stomach the volatility, and once the rand stabilizes a bit and rate cuts start looking real, recruitment should pick up. long-term view hasn't changed for me, adcorp's got the market position, just need the cycle to turn.
@guppy_jse dividend catch is real, temp book will turn
ADR's been bouncing around R6.30 but the real question is whether staffing plays recover when the economy picks up. Their temp placement business is so dependent on corporates actually hiring again and with load-shedding killing productivity, tough to see a quick turnaround. That said if you're thinking long term, valuations on staffing stocks are pretty beaten down vs where they were. Could be a sneaky accumulation play if you've got patience.
@guppy_jse dividend is the only thing keeping this afloat tbh, temp book is still weak
adcorp sitting at r6.30 is basically where it deserves to be until they show they can actually win back corporate clients post-covid. temp staffing is a dogs game anyway, margins get hammered soon as the economy sneezes, but if they can stabilize headcount and stop bleeding clients theyre not expensive at these levels. big dogs dont cook they eat.
interesting numbers actually, adcorp's got margin pressure but the temp staffing model means they can flex costs faster than a lot of industrials when things slow. worth noting they're still cash generative even with load-shedding eating into client capex. imo this trades on whether you think recruitment picks up in 2025 or we're in a longer slog, fwiw.
adcorp sitting at r6.30 and the dividend yield is still decent if they can stabilize the temp staffing book. easyequities crowd seems split but there's solid buy interest whenever it dips. ngl the economic headwinds are real but patience looks like a good idea here, more eyes on the prize once employment numbers pick up.
ADR up 3.10% to R6.65, which is lekker given the recruitment sector's been under pressure. Trading at around 0.8x P/B versus Workforce's 1.2x, so there's a valuation case here if they can stabilize margins on the back of improved placement volumes.
Do you think they can actually scale revenue before the cash runs out, or is this just another JSE penny stock story. Up 6% today but fundamentals still look thin to me.
ADR's 9.67% jump to R669 warrants scrutiny on whether this reflects genuine operational improvement or market mean reversion. The industrials staffing space remains structurally challenged with thin margins and cyclical exposure, so I'd want to see evidence of sustained contract
ADR taking a knock today at 571 rand, down 4%, but I'm curious how it compares to the other staffing companies on the JSE. Anyone know if Adcorp is trading worse than its peers or is the whole recruitment sector feeling the pressure right now?
ADR just dropped 9% today, is this a chance to grab some at a lower price or should I wait to see what happens next week?
Just bought some ADR at R635 because it jumped 4.10% today and I'm hoping it keeps going up for my kids' school fund, is that smart or am I being silly?
ADR breaking above that R610 resistance on solid volume today, now testing the 4.10% pop. If it holds above R630 into close, we could be looking at a run towards the R680 level where it topped back in March.
Everyone panicking about ADR dropping 14% today but honestly the fundamentals haven't changed, this looks like a buying chance if you believe in the company long term. All this selling might be noise rather than real trouble.
ADR's 4.34% pop to R625 catches my eye, but I need to dig into whether the dividend cover remains above my 2x threshold before getting excited about the move.