THE HIGHER COM­MOD­ITY PRICES GRINDROD NEEDS SEEM UN­LIKELY

Finweek English Edition - - SIMON SAYS -

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.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.