Tiger Brands trading update

Tiger Brands released a voluntary trading update yesterday morning, now the voluntary part means that it is below the levels of increase, or decrease for them to be required to tell the market. But, in this day and age, shareholders like guidance and comfort blankets. Here goes: ".... it is expected that headline earnings per share ("HEPS") and earnings per share ("EPS") will reflect increases of between 10% and 15% and between 15% and 19% respectively, compared to the previous financial year."

Oh, now it turns out that "an abnormal gain in 2011 arising from the recognition of the company`s equity interest in National Foods Holdings Limited of Zimbabwe, which was not previously accounted for" is the main difference for the difference in EPS and HEPS. What a twist, "things" in Zimbabwe improving? Who would have thought that was the case? Me.

These results will be released next week today, and are for the full year to end September. The stock price added more than one percent to close at 23450. Which is an all time high. Well, I guess the market is pretty close to that all time high, just a mere three or so percent away, so when you have majors close to their all time highs, then that is expected I guess. This is kind of in line with the forecasts that I can see, that means that the stock is trading around 15 and a half times, with a dividend yield (expected) of 3.4 percent. Next year the yield expectation rises to 3.7 percent and the price to less than 14 times. Cheap? Expensive? The analyst community either has a hold or a buy rating on the stock. I suppose we do not have to wait long to see the results.