SIT­TING TIGHT

Finweek English Edition - - SIMON SAYS -

Frankly t he Grindrod t rad­ing up d a t e l o ok e d b e t t e r than ex­pected with weighted (ad­justed for new shares is­sued) HEPS for the si x months end­ing June only ex­pected to be 14% to 18% lower. That said, the com­pany r ea l l y needs a posit i ve t ur n i n com­modi­ties to f i re on al l cylin­ders. But this is the new-look Grindrod, with strong lo­gis­tics help­ing to off­set weak ter­mi­nals and tail busi­nesses; t he l at­ter be­ing hurt by weak com­modi­ties. Ag­gres­sive in­vestors may well want to start pick­ing up some Grindrod here, but I am wait­ing. Firstly, this is not a buy-and-hold stock as its busi­ness is al­ways go­ing to be cycli­cal in na­ture. Se­condly, I hate buy­ing early and would rather wait for some signs of a turn­around.

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