Asciano follow up...weather impacted 3rd qtr result | Raymond Chan | Finance News Network

Asciano follow up...weather impacted 3rd qtr result

by Raymond Chan

Asciano's thrid quarter result was impacted by volumnes which were down around 6-8%. FY11 EBIT is wound back slightly (under 3%) to A$530m-540m, demonstrating earnings resilience. Potential further strike action is risk to earnings.

Overall, price at current level ($1.64) is un-demanding.

Asciano is being valued on a rail multiple, whilst 36% of its earnings come from ports.

Previous options strategy of selling Jun $1.70 put and buying of Jun $1.60 put is still workable and is giving around 4-4.5c income per contract.

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