THE HIGHER COMMODITY PRICES GRINDROD NEEDS SEEM UNLIKELY
Grindrod results were pretty much as expected: HEPS was off 16% on the back of new shares issued. Net asset value (NAV) is R23.16, some 50% above the current share price, with a lot of that being in the form of ships and cash. The question is not whether the share is cheap – it is by almost any metric – but rather what will see the share price rerating higher? The weaker rand helps, but really Grindrod needs improving commodity prices. Not just a blip higher, but a sustained move higher, and I don’t see that happening any time soon.