Southern Ocean SOH)

[ROWEGI]

I have been holding these for a while and thought there might be a run considering the low PE. I haven't seen any negatives posted on this share so considering the current PE multiples on thr market this one seems relatively cheap. Any thoughts?

[Vince888]

I Like this company. Currently on my watchlist. Agree that they are relatively cheap, but they have a lot of debt.

[ROWEGI]

They have an NAV of R3.50 which implies they should have the ability to cover the debt if things go wrong so to my mind the high debt is less of a risk. I see there is some competition enquiry related to a division and they say that there is some risk on profits in the second part of the year due to the strikes but there has been some director buying activity albeit small. They just need to stabilize and they should give a reasonable medium return.

[DaMerlin]

If you look at the Forward looking statement that was made with their last results, I seem to remember the company having a slightly negative outlook towards the current set of results to be released