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Grindrod

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#1 Ollie

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Posted 02 February 2015 - 04:47 PM

I got in "long term" at sub R 15 and was wondering if there was anything one should know before adding to a position at current levels.

 

I cannot think that the Baltic dry index is the only reason for this big decline.

They are a much more diversified company now.


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#2 soutie

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Posted 30 January 2015 - 01:54 PM

Grindrod is attached to the global economy me thinks plus the baltic dry index is bumping along at the bottom.

A lot of their revenue streams are immensely capital intensive....wait you know this already yeah..?

What price did you get in at. It's on my to do list sub R17 if it makes it there..


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Anyone need a heads up...!


#3 Ollie

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Posted 30 January 2015 - 12:43 PM

Anything??


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#4 Ollie

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Posted 30 January 2015 - 09:49 AM

Hi Everyone,

 

Any idea what is happening at Grindrod.

 

It had a high of +/- R 28 last year and now only +/- R 18.

 

Any info would be appreciated.

 

Regards


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#5 vlam

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Posted 06 May 2014 - 09:46 AM

Any idea as to when this issue is scheduled to take place?

Have been waiting for ages for a dip so I can get in :)

 

There's a good article about Grindrod out on moneyweb today: http://www.moneyweb....-of-the-iceburg

 

Just want to quote a salient section as it relates to the next couple of weeks:

 

 

The bookbuild will take place in the first or second week of this month.

 

One cannot assess whether minorities should take up the offer until the bookbuild price is known, says Reuben Beelders, portfolio manager at Gryphon Asset Management. But, he says, it is worth noting that shareholder Remgro has backed them before and is backing them again. “They have taken a long-term view on this investment.”

 

Once the BEE transaction and bookbuild is complete Grindrod will have R3 billion of net cash to invest in capital projects. It will raise another R7 billion in debt at a project level.


Edited by vlam-hobbyist, 06 May 2014 - 09:47 AM.

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#6 newbie

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Posted 01 April 2014 - 07:33 PM

Any idea as to when this issue is scheduled to take place?

Have been waiting for ages for a dip so I can get in :)
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#7 vlam

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Posted 01 April 2014 - 04:00 PM

More news related to Transnet and rail:

http://www.engineeri...tem-2014-03-31/

 

Not directly related to Grindrod (as of yet?) - just interesting to piece together the different companies involved with Transnet and rail.


Edited by vlam-hobbyist, 01 April 2014 - 04:01 PM.

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#8 MrDividend

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Posted 01 April 2014 - 11:24 AM

Not necessarily, it's usually shares additional to the ones in issue already. Let's say a company has a 100 shares in issue, and 1 share represents 1%, when they issue say 50 more shares, the only thing diluted is the value of each share (from 1% to 0.67%). They cannot issue shares that are already on issue, because they're already owned by someone else.

 

If I can add using your example - you now own 0.67% of a bigger pie (and your share is still worth the same) - depending on what they do with the money - normally it's used to pay off debt or a capital purchase. Sometimes these "new" shares are offered at a large discount (aka ABIL a few months back) - now that does hurt the share price. And of course, many companies dish out shares to staff constantly, like the old cafe owners handed out chappies, also diluting the share price. But they seem to operated on the principal that if the company has a market cap of 40 - 50 billion R's - what's a few million here and there. Grumble, grumble..... :lol:


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#9 WINH

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Posted 01 April 2014 - 10:44 AM

Mr. Div, help me understand, please

If they are offering shares for cash, are these shares the ones in issue already?

Not necessarily, it's usually shares additional to the ones in issue already. Let's say a company has a 100 shares in issue, and 1 share represents 1%, when they issue say 50 more shares, the only thing diluted is the value of each share (from 1% to 0.67%). They cannot issue shares that are already on issue, because they're already owned by someone else.


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#10 Sugafoot

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Posted 01 April 2014 - 10:36 AM

Mr. Div, help me understand, please

If they are offering shares for cash, are these shares the ones in issue already?
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#11 MrDividend

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Posted 01 April 2014 - 10:01 AM

 

I find it unbelievable that transnet could not have ordered a few trains every year or so for the  next ten years. 


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#12 Stefan

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Posted 31 March 2014 - 10:18 PM

Must read!

 

http://www.engineeri...ives-2014-03-27


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#13 vlam

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Posted 31 March 2014 - 03:31 PM

What I meant - My share of the company, my share of current earnings, decrease by 25.51%

 

(Hey, I'm a hobbyist.  If you think I made a reasoning mistake feel free to engage me.  I still have A LOT to learn :) )

 


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#14 MrDividend

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Posted 31 March 2014 - 12:15 PM

I am probably wrong but surely if they offer 4bn in shares they are also receiving 4bn in cash - and the balance sheet evens out? The only slight dilution would be the slight discount normally offered on the new shares.

 

That's just me working it out in my head - so probably wrong....


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#15 vlam

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Posted 31 March 2014 - 09:28 AM

...
If I'm not mistaken, they will be raising the capital by offering more shares.
If that is so, can we expect a significant pullback to sub 2300?
...

 

Yep, I have the share in my longterm portfolio - but I'm also going to be watching it closely for a bit.  Hopefully the market overreacts and creates an opportunity to pick up some more.

 

Current market cap: R15.680 bn

New equity: R4bn

Increase in equity percentage (share dilution...): 25.51%

 

The new capital offering is new news - so let's see what happens to the share price in the next couple of days :)


Edited by vlam-hobbyist, 31 March 2014 - 09:29 AM.

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#16 Sugafoot

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Posted 31 March 2014 - 07:02 AM

I'd love to take a punt in this company. It's focused on the right market but that market is fraught with difficulties in payments.

If I'm not mistaken, they will be raising the capital by offering more shares.
If that is so, can we expect a significant pullback to sub 2300?
Because I'd be happy to buy at those levels then.
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#17 Stefan

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Posted 30 March 2014 - 11:43 PM

<br />http://www.iol.co.za...56#.UziNTKPRbFo<br />Sent from my GT-I9300 using Sharenet Sharechat mobile app<br /><br />
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#18 Stefan

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Posted 30 March 2014 - 11:29 PM

Relevant article to our discussion<br />http://www.bdlive.co...-cheaper-trains<br /><br />Sent from my GT-I9300 using Sharenet Sharechat mobile app<br /><br />
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#19 vlam

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Posted 30 March 2014 - 10:50 AM

On second thought I guess anything that improves the movement of commodities in South Africa can potentially benefit them in some way, especially if it uses Grindrod's logistical services or ports.

 

And you did actually ask about Grindrod *indirectly* benefiting...


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#20 vlam

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Posted 30 March 2014 - 01:10 AM

I wonder If RRL Grindrod would indirectly benefit...

 

Not sure, I don't see a causal link (as a layman) between the Transnet contracts and Grindrod.

 

"The contracts were awarded to CSR Zhuzhou Electric Locomotive and Bombardier Transportation SA to supply 599 electric locomotives, while General Electric South Africa Technologies and CNR Rolling Stock South Africa (Pty) Ltd would build and supply 465 diesel locomotives." [Source]
 

AND YET

"Grindrod has ventured into rail infrastructure investment in Africa. It owns 51% of RRL Grindrod Locomotives. Its locomotives "were consistently priced better than other original equipment manufacturers" [Source]

 

The reason Grindrod didn't get the contracts (and DIRECTLY benefit) is possibly just that they don't have that capacity yet.

 

"supply 465 diesel locomotives" compared to Grindrod's current capacity:

"The capacity of the RRL Grindrod Locomotives plant had increased to 100 locomotives a year, up from just 25 in 2012"

 

 

Awesome company, also have it in my long-term portfolio :)


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