CHUG­GING AHEAD

Finweek English Edition - - INVESTMENT -

Racec is­sued a trad­ing up­date, with HEPS for the full year ex­pected to be be­tween 18.4c and 27.1c, a huge range, but an even greater im­prove­ment on the 101c loss for the 2011 fi­nan­cial year. Racec is in­volved in rail con­struc­tion, rail elec­tri­fi­ca­tion and also op­er­ates as a rail main­te­nance con­trac­tor and is seem­ingly ben­e­fit­ing from Transnet’s spend­ing on rail net­works in SA. At a price of about 80c, this puts it on a his­toric P/E of around four times and if it can main­tain this level of prof­itabil­ity, then this is a se­ri­ously cheap-look­ing stock, al­beit I, as al­ways, cau­tion to wait for the de­tailed re­sults state­ment first.

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