Brendon Hubbard, portfolio manager at ClucasGray, on what the smart money is doing
06 July 2023 - 05:00
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The port and rail operator has been growing strongly over the past couple of years. Its investment in Maputo harbour stands out. Grindrod has also cracked the railway complexities between Eswatini and Mozambique with its coal logistics business, and stands to benefit from South Africa’s planned railway reforms.
In addition, the stock is trading at an exceptionally low p:e of less than five, which means there is strong upside. Grindrod has low debt levels, which stands it in good stead in these times of high interest rates. There’s potential for the company to double earnings in the years to come.
Sell: Platinum stocks
The platinum industry is struggling and has a lot of downside. Russia has sold off most of its platinum and palladium stock since it invaded Ukraine. In South Africa, the battle for control between Impala Platinum (Implats) and Northam Platinum for Royal Bafokeng Platinum is also an example of what is going on in the industry.
Over the past year, Anglo American Platinum’s share price has slumped by 38%, Northam Platinum is down 24% and Implats has lost 28%.
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BROKERS’ NOTES: Buy Grindrod, sell platinum
Brendon Hubbard, portfolio manager at ClucasGray, on what the smart money is doing
Brendon Hubbard, portfolio manager at ClucasGray
Buy: Grindrod
The port and rail operator has been growing strongly over the past couple of years. Its investment in Maputo harbour stands out. Grindrod has also cracked the railway complexities between Eswatini and Mozambique with its coal logistics business, and stands to benefit from South Africa’s planned railway reforms.
In addition, the stock is trading at an exceptionally low p:e of less than five, which means there is strong upside. Grindrod has low debt levels, which stands it in good stead in these times of high interest rates. There’s potential for the company to double earnings in the years to come.
Sell: Platinum stocks
The platinum industry is struggling and has a lot of downside. Russia has sold off most of its platinum and palladium stock since it invaded Ukraine. In South Africa, the battle for control between Impala Platinum (Implats) and Northam Platinum for Royal Bafokeng Platinum is also an example of what is going on in the industry.
Over the past year, Anglo American Platinum’s share price has slumped by 38%, Northam Platinum is down 24% and Implats has lost 28%.
All stations go for new Angola rail link
Winner takes (almost) all as Impala Platinum secures Royal Bafokeng Platinum
JSE-listed miners take hit amid global growth jitters
Companies in this Story
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