What makes a sector a surprise winner? When fundamentals are changing, but skepticism is still high. Cement is a sector that has probably seen the most mergers and acquisition in the last three years. From the second-biggest player seeing a change in ownership, to small players being taken over. The question is: Why are people pumping so much money into the sector? The answer: Probably because, after years, things are changing and the sector is witnessing a consolidation. Does this consolidation mean things will change for the better? Will pricing power improve? Will operational costs come down? If the answer to these questions is yes, the current wave of correction is an opportunity for long-term investors.
