GND and the market?

[#1]

Does anyone have any idea or even just a ill-advised thought as to why GND reports huge earnings, great future & yet seems to not catch the eye of the market? Am I missing some fundamental flaw?

[Werner_1]

They have always said that the market here in SA undervalues their shares, i think it could be because there is no direct listed competition in the same business category listed on the JSE, But this is a excellent company, i hold long term shares in it!

[HungryPunter]

I believe that it is due to them indicating that they are investing in Maputu and as such could erode dividents. Just my thoughts.

[CrownA]

GND is big into shipping, but shipping rates have fallen sharply on the downturn in the world economies.

[Plonky]

Yes, it is hard to understand. Their dividend yield is higher than the PE ratio

[#6]

Shipping rates might be down, but I read somewhere that their order book was already 60% full. Also read in an interview that a depreciating rand gives them huge profit boosts. Couple that with the drop in fuel and i think they look good. What is tricky to understand, is how they are valued because of the cyclicle nature of their business. Read one of hte old standard bank research reports which explains the evaluation method used.