I really like Grindrod, I think if one plans on holding for long term it is possibly a good level to enter. I have topped up my position since December last year... Chairman and CEO have sold some shares though, saying to settle debt obligation and balancing their portfolio... but i think once the world starts to operate properly again they will be attractive and from quite a discounted level i think we will make some good profits once again, the company is a very well managed operation.
and, to boot, extremely well situated strategically with their Maputo port investment. Great company, good cash reserves, and well placed strategically to be among the first to benefit from a turnaround in the economy (resources have to be shipped somehow!)
But then the top okes should be selling other stuff to buy more GND, not the other way around. Rebalancing indicates they think the risk/reward isn't worth their exposure to GND. Look at the future div yield - certainly drops off compared to 2008.
I think, but only think, that the container market is different to bulk carrier. GND have lots of other revenue streams, including bunkering & warehousing. They will benefit from the weaker rand, which should reflect in their financial results, and they also benefit from the weaker oil price. They had forward contracts with 50% capacity up till 2010, so i think they are pretty sound. My gues is that we are going to see an acquisition soon. Also don't know why the directors are selling though - Ivan Clark sold a massive amount at the beginning of hte year.
skaaptjop, i agree with you, i have been holding this company ever since i started investing, it was one of the first ever bought. only been adding to it over the years. Ivan Clarke they did say had to settle some debt obligation, i wonder if this was not an arrangement made some years back to acquire shares, now that the market is more risky they reduce the risk to clear some of that debt. I dont know the numbers right now, but he had a huge amount even after selling in December 2008 (i think it was then). Maputo will add some stability as well, GND is also acquiring in fields other than shipping to increase their annuity income (as you said) all in my view is a very good strategy where they acquire in times like now and when times go well they cash off... I will not be selling anytime soon.