Time to stock up?
Oceana is a stock I have been watching for a long time. I have been looking for a potential cheap entry point, and its latest trading update may be offering such an opportunity. The company reports that headline earnings per share (HEPS) is down between 15% and 18%. About half of this decrease is due to “losses on foreign exchange contracts held to cover the import of frozen fish”. This number went from a positive R69.9m in the previous year to a loss of R44.7m. The balance of the decline is from lower volumes in canned fish. Currency moves will be a feature going forward, but these should be offset by dollar earnings from its recent US acquisition to a degree. For now, I am waiting for results due on 18 May to get a clearer picture of the company.