Trencor Extends Retreat After Sales Decline: Johannesburg Mover
Trencor Ltd. (TRE) shares fell today, bringing their losing streak to the longest in more than seven years, after the South African investment company with interests in cargo containers said sales dropped 2.1 percent last year.
The stock retreated 0.5 percent to 68.50 rand at 2:43 p.m. in Johannesburg, for its eighth consecutive day of declines, the longest losing streak since December 2005. The volume of shares traded was 71 percent more than the three-month daily average.
Full-year revenue fell to 4.55 billion rand ($513 million) from 4.65 billion rand, Trencor, based in Cape Town, said in a statement after the market closed yesterday. Adjusted headline earnings per share climbed 13 percent to 546.1 cents.
The stock price has been driven down by results “worse than we expected coming from their interim results and the share being overbought,” Paul Trilivas, an analyst at Johannesburg- based equity researcher Value-Kwik, said in an e-mailed note today. Value-Kwik rates the shares as “strong underperform” with a 12-month price target of 67.24 rand, it said in a report today.
Trencor has advanced 25 percent this year, the third-best performance on the 165-member FTSE/JSE Africa All Share Index (JALSH), data compiled by Bloomberg show.
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