Friday, March 2, 2007

South Ocean - an update

I called South Ocean and spoke to the Financial Director, Koos Bekker, to obtain more information on the company. Based on our discussions, the company is currently trading at a PE of around 15. It is looking to increase the revenue by about 10% this year. In terms of profits, it will very much depend on the copper price, which affects the input costs.

While this is a solid company in operation for many years, investors should wait until the price falls to R5 - R5.50 before investing in the company.

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