Zimbabwean Stocks - National Foods Limited

[claphands22]

I got bored today and started to try to find publicly listed companies in exotic countries. Maybe someone here will find this interesting, because my girlfriend didn't find it interesting at all.

 

National Foods Limited

 

68,379,000 shares outstanding

 

Market capitalization 75,216,000

high 1.1

low 0.05

share price $1.1 [at the end of the report]

 

67.07 net assets a share

basic earnings per share 9.53

 

"The local currency disappeared and the environment became free to trade in"

 

"Due to the unique circumstances prevailing in the Zimbabwean economy during the financial year and its consequent effect on theGroup's ability to report accurately for a large portion of this period, the Directors advise caution in the use of the income statement,cash flow statement, statement of changes in shareholders equity and the opening balance sheet for analysis and decision makingpurposes. The Directors are however satisfied that the balance sheet as at 30 June 2009 forms the correct base for reporting results for future periods."

 

References to the nominal share price in ZWD are prior to the slashing of 10 zeros from the Zimbabwe dollar in August 2008

[mloub]

Interesting, indeed.

 

The numbers are not quite as great as they might seem at first.

 

The quoted price in US cents is 110 ($1.10) as is the NAV of 67.07 ($0.6707) and earnings per share of 9.58 ($0.0958).

 

So in reality, you are buying at a touch below 1.5X book, for a PE ratio of a touch more than 11. Decent, but perhaps a little rich for Zimbabwe.

 

Made me want to look a little bit more closely though. I'll let you know if I find something interesting.

 

M.