Dou­ble hit on the hori­zon

Finweek English Edition - - MARKET PLACE -

Ton­gaat* re­sults saw the ex­pected in­crease in sugar prof­its (al­most dou­bling), al­though the stock will move still higher over the next 12 to 18 months as it con­tin­ues the trend up­ward now that the drought has eased. Un­for­tu­nately, the prop­erty part of the busi­ness saw prof­its down over 50% and with starch flat, as ex­pected, the re­sults only ticked up with head­line earn­ings per share (HEPS) up a mere 3.6%. Land will al­ways be lumpy and weak pe­ri­ods can be pro­jected to be fol­lowed by stronger pe­ri­ods, so we should get a dou­ble hit to the up­side in the next set of re­sults with land and sugar adding to prof­its. I hold the stock and am happy with the po­si­tion.

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