Tren­cor’s fate tied to the

Finweek English Edition - - INVESTMENT -

Tren­cor is an in­vest­ment hold­ing com­pany that fo­cuses on own­ing, leas­ing, man­ag­ing and re­selling ma­rine cargo con­tain­ers world­wide as well as re­lated fi­nanc­ing ac­tiv­i­ties. Tren­cor has two seg­ments: container fi­nance as well as container own­ing, leas­ing, man­age­ment and re­selling. Its sub­sidiaries in­clude Tex­tainer, Tren­cor Ser­vices, Tren­cor Con­tain­ers and TAC. Af­ter a 59% drop in 2007 un­til 2008, Tren­cor man­aged to re­cover all its losses and main­tain a steady up­trend. Be­ing a dol­lar-earn­ing com­pany through its 48.3% ben­e­fi­ciary in­ter­est in Cal­i­for­ni­abased Tex­tainer, which is listed on the New York Stock Ex­change, a stronger rand was ben­e­fi­cial for Tren­cor – it inf lates earn­ings priced in dol­lars when con­verted back into the lo­cal cur­rency.

All the div­i­dends is­sued from April 2013 made Tren­cor even more at­trac­tive to in­vestors; Tren­cor is­sued a fi­nal gross cash div­i­dend of 150c/share out of dis­tributable re­serves based on the fi­nan­cial year ended 31 De­cem­ber 2012, and de­clared a spe­cial gross cash div­i­dend of 360c/share out of dis­tributable re­serves. An additional in­terim gross cash div­i­dend of 72c/share out of dis­tributable re­serves in re­spect of the six months ended 30 June 2013 was paid in Septem­ber 2013.

Tex­tainer re­cently an­nounced that it had been awarded a con- tract by the US Depart­ment of De­fence Container Man­age­ment for the year start­ing on 24 De­cem­ber 2013, with po­ten­tial for re­newals. Tren­cor also ac­quired about 30 000 t wenty-foot equiv­a­lent units (TEU) of stan­dard dry freight con­tain­ers from its man­aged fleet, in­creas­ing the per­cent­age of Tex­tainer’s owned fleet to 77%. POS­SI­BLE OUT­COME: Tren­cor has been trad­ing within a sym­met­ri­cal tri­an­gle since March 2013, which runs par­al­lel to when the rand started to weaken grad­u­ally from 9 000 to 11 380. This side­ways mo­men­tum may con­tinue un­til a break­out in ei­ther di­rec­tion oc­curs. Be­cause the rel­a­tive strength in­dex (RSI)

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