Transpacific to resume full service
Recommendation
Transpacific Industries has announced that ‘following discussions with the regulator, TPI has commenced the gradual resumption of its waste management services across Australia. TPI expects that all services will be fully operational over the next week.’ Though the financial impact from grounding the entire fleet following a fatal accident in Adelaide yesterday is unknown, the resumption of services should be good news for Transpacific’s share price and those that bought into the uncertainty.
We’ll keep you informed of any twists and turns as the investigations into the causes of the accident are completed, but hopefully it doesn’t distract management for too long as chief executive Bob Boucher faces a difficult task over the next few years improving Transpacific’s performance and regaining lost market share.
Transpacific’s share price hasn’t budged since Transpacific grounds its fleet from 20 Aug 14 (Buy – $0.93) and we’re sticking with BUY.
Note: The model Income Portfolio and Growth Portfolio own shares in Transpacific.