http://www.moneyweb.co.za/investing/beat-rand-weakness-with-these-5-surprising-stock-picks/Oce

Oceana
Our last pick is Oceana. After its R4.6 billion acquisition last year of American fishmeal and fish oil company Daybook Fisheries, close to half of its annual earnings will be generated from markets outside SA. With that mix, the depreciation of the rand against other currencies will be a boost as its foreign earnings are increased substantially when exchanged into rands.
There are other reasons to support an investment in this company. Oceana boasts a defensive business with a management team that is good at capital allocation. Although vulnerable to exogenous vagaries, the fishing industry exhibits some defensive qualities. It is also a limited and highly regulated sector. Most governments impose maximum catch limits and issue a limited number of licences. Adding to that, operations are highly capital-intensive which create barriers to entry for smaller players. These restrictive elements bode well for Oceana.
The acquisition of Daybrook has entrenched the group as Africa’s biggest fishing company. It also diversifies Oceana’s fishing rights and licences, fish species, operational geography and currency exposure. This brings flexibility which was previously lacking. These factors, coupled with impressive market share numbers for its products, are great for shareholder value creation over time.
At a one-year forward PE multiple of 13 times, we think Oceana shares also deserves consideration. The major weakness with the stock is that it doesn’t offer a clean rand hedge. Its earnings are almost evenly split between rand and non-rand currencies. Furthermore, a substantial portion of the group’s cost base is denominated in dollars, which means the depreciation of the rand will have mixed effects on the group’s bottom line. Overall though, we expect the company to benefit from the weakening rand.