Builders in red braces

Construction firms quoted on the Warsaw Stock Exchange do not enjoy a great deal of popularity among investors but analysts assure us that this is a temporary state of affairs The overall share value of construction companies quoted on the Warsaw Stock Exchange, amounts to 2 per cent of its whole capital. Out of the 200 listed companies, 33 belong to the construction sector and from this we may draw the following conclusions: -Polish construction companies are relatively small -construction firms are not highly valued by investors because of their low profitability (the conventional methods of relative valuation such as the P/E ratio, i.e. the relation between a share price and profit per one share, cannot be applied since these companies do not generate a net profit) -the construction market is very fragmented How do these factors impact on investors' attitudes to acquiring shares in construction companies? According to Marek Majewski, a PKO BP brokerage section analyst