Don’t rush in

Finweek English Edition - - MARKET PLACE -

Grindrod pub­lished re­sults with HEPS fall­ing into a loss of 61.2c ver­sus a 74.4c profit last time. Net as­set value has fallen from 2 450c to 2 007c as it im­paired tan­gi­ble as­sets by some R2bn, and im­paired good­will by al­most half a bil­lion rand. With a mar­ket cap of R11bn, the com­pany has un­der­ly­ing cash of just over R9bn and debt of just un­der R2.5bn. It has ex­ited the rail man­u­fac­tur­ing busi­nesses, a good move as it man­ages lo­gis­tics – man­u­fac­tur­ing was never its core busi­ness. The share price is up al­most 50% since the lows of last May and while the com­pany is well cap­i­talised and un­der no threat of go­ing bust, I would not rush to buy. Rather wait for the turn­around back to profit to start be­cause tough times can (and do) of­ten last longer than any­body ex­pects.

While the com­pany is well cap­i­talised and un­der

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