Asciano group's ship may have come in. Finally. After a very busy week rejecting a takeover offer and announcing its results, a new strategy of expansion may be delivering for this rail and ports operator.

After Toll Holdings spun off the company last year, it has had rather a rocky ride. Its share price plummeted from a high of close to $11 to a low of $3.25.

As the transport infrastructure specialist, Asciano was also left with most of Toll's debt, which didn't do it any favours after the credit crunch.

Announcing its maiden full-year result - described as messy by some and satisfactory by others - chief executive Mark Rowsthorn, also the major shareholder, outlined a plan to expand terminal operations at Fisherman Islands in Brisbane and into the Queensland coal haulage market.

To fund all this, it will implement a security purchase plan, offering shareholders the opportunity to buy up to $5000 in new Asciano stapled securities at a 5 per cent discount.

The share price has risen well above the $4.40 takeover offer rejected earlier but that offer, along with the growth plans, helped to put a floor under its previously ailing share price. Results came in slightly under forecast due to the cost of coal at its Hunter Valley operations. But revenue was up 5 per cent and earnings before interest, tax, depreciation and amortisation were up 10 per cent.

It reported a loss of $182 million, mainly due to write-downs in the carrying value of some of its assets and a realised loss on its sale of its stake in Brambles.

On the positive side, it's working on fixing its balance sheet and reducing some of its high levels of debt via cuts to distributions. The proposed security purchase plan will help and it has also flagged plans to sell part of one of its businesses.

Analysts Citi Investment Research say the company is "finally delivering" and has pushed its forecast target price up to $6.08 from $4.72.

UBS Investment Research is not so upbeat. It is disappointed with its attempts to resolve its capital issues and says there is uncertainty about its funding sources after the current financial year.

It has lowered its price target to $5.50 from $5.90.

Advantages

- Reasonable result

- Expansion plans

- Security purchase plan

- Newcontracts

Disadvantages

- Rising costs

- Debt levels

- Funding uncertainty

- High interest costs

Verdict

- Possible turnaround story.

Brokershave mixedforecasts.

May have already hit its highs but worth watching.