WHATDOYOUKNOW about HUDACO?

I’m either missing something or this could be quite a nice entry point into a company which I feel could be in serious value territory. They’ve recently been named winner (in Industrial: Basic Industry) by Investment Analysts Society for their reporting awards, which in my view is a big plus if you look at the recent accounting and reporting practice scandals in some well-known companies. HDC is trading at a historic PE of below 10 and a historic dividend yield of close to 5%. The share price is currently trading at a major parallel (channel) support line, with a break and close below R113, most probably only seeking support at around R100 (this will also act as my stop-loss).

Should we see the support hold and recovery from current levels, we could price aim for the 50-day moving average levels (at around R131), with a breakthrough those levels, most probably testing the 200-day moving average at around R138. Thomson Reuters consensus target price for the company, sees a break above the top of the channel resistance line towards the R158 levels.

Trade active:

Stable set of results today. Unaudited interim results for the six months ended 31 May 2019


Highlights

* Turnover up 7,5% to R3,2 billion

* Operating profit up 2,4% to R297 million

* Comparable earnings per share marginally up 0,5% to 520 cps

* Interim dividend unchanged at 190 cps

* Net cash generated from operations R301 million

* Basic and headline earnings per share up 0,9% to 533 cps