Between the 12 months to end February 2008 and February 2010 Erbacon’s turnover almost trebled, from 225m to 834m, its net income more than doubled, from R31.7m to R65.3m and cash on hand increased from R42.4m to R81.7m.

Yet the company’s share price from the time those results were announced fell from a high of 270c (26/5/08) to a low of 140c (24/5/10). And when Erbacon subsequently reported a loss of R18.6m for the 6 months to end August 2010 its share price fell only a further 20c (8/11/10). Suggesting either the company’s shareholders were expecting it or its share price is impervious to short term performance.

Which will be a pity if Erbacon manages to bounce back quickly with a decent set of results in the second half.

Something it’s apt to do given the change in CEO along with a forward order book of nearly R1 billion and the new initiative announced in November.