Time to stock up?

Finweek English Edition - - MARKETPLACE -

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.

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