Golden Agri   

Rising palm oil prices

anyone know how current stock split can affect any Warrant on Golden Agri counter.
currently there are 2 Warrants on golden Agri both have exercise price of around 2.7 / 2.8.

if after stock split, price of Golden Agri share becomes around 1.2 / 1.3 , will there be adjustment to the Golden Agri warrant exercise price.

anyone knows how to contact the issuer of the Golden Agri Warran. mine is Deutche Bank.
is there an email id or phone no for them.

 

Golden was very well supported by foreign investors.  The pullout must have caused the stock price to spiral down.  However, I believe they will be back.  Anyway, Golden will be having a 1-to-2 stock split.

 

Like other stocks, its price has been falling because of the market selldown. All stocks are affected. It is also down because crude palm oil prices are down.

You have to be very disciplined when buying and selling stocks. The number 1 sell rule is to cut loss when the stock falls 10% from your purchase price. This way, you preserve your capital to buy at a much cheaper price.

 

Golden Agri is currently re-evaluating the proposed issue due to the recent volatility and weakness in the financial markets. GAR said that it will explore other options such as bank loans to finance its expansion.

Support is around $1.80-$1.90. There is no need to create another thread for this counter.

 

What is the support price for Golden Agri?  Will that a rebounce for this counter? 

 

Falling due to postponement of a US$400m convertble bond issue as investor appetite for risk soured. It's not so easy to raise capital now.

 

Today might go down to $2.25, then $2.10 from the chart.....

 

Mates, what is the forecast for this counter?? It is rather down now

 

GAR - It is time to CHEONG AH!!!

 

This can't be wrong on palm potential

Unaudited financial Half year 2007

Net profit half yr 2007 S$84.66 +46% compare to half year 2006 and cash flow also increased.

 

MOODY?S RATING

The Board of Directors of Golden Agri-Resources Ltd (?GAR? or the ?Company?) wishes to announce that

today, Moody?s has affirmed a global corporate rating of Ba3 with stable outlook to GAR. Ba3 is currently

the highest global rating issued for Indonesia.

On Moody?s national scale ratings, GAR is rated Aa3. Aa3 is currently the highest rating issued in

Indonesia.

For further information, please refer to the Moody?s website at http://www.moodys.com.

BY ORDER OF THE BOARD

Simon Lim

Director

23 July 2007

 

Summary: Demand for CPO worldwide is increasing and CPO prices are now close to record highs. This was buoyed by under-cultivation in the past, and as a result of this, supply is lagging demand. Golden Agri-Resources (GAR) is one of the world?s largest oil palm planters and producers of CPO, producing over 1.5m tons in FY06. It has approximately 338,000 ha of planted area (including plasma), with a mature area of 293,000 ha (including plasma). This makes it the largest owner of mature planted area among its peers. In addition, the age profile of GAR?s trees favourably positions it to capture the upside in CPO prices. With the rising demand from China, consumption of refined vegetable oil products will also increase. We believe that with all the above positive factors, GAR is in a sweet spot to capitalize on strong demand and high CPO prices. While the stock has already appreciated 113% this year, we believe that the outlook remains rosy for GAR. We are initiating coverage on GAR with a BUY rating and a fair value estimate of S$3.22, or a 25% potential upside from the last closing price of S$2.57.

Rising global demand for CPO. Outlook for the palm oil industry is looking positive. First, demand for CPO worldwide is increasing. Consumption grew by more than 28% from 28.2m tons in 2003 to 36.3m tons in 2006. Secondly, prices of CPO have been soaring as under-cultivation in the past has resulted in supply lagging demand. CPO prices rose from a low of US$272 between Oct 2000 to Sept 2001, to a recent high of US$662.50 in Jun 2007.

GAR is a key player in the market. Golden Agri-Resources (GAR) is one of the world?s largest oil palm planters and producers of CPO, producing over 1.5m tons in FY06 and 336,955 tons in 1Q 2007. It has approximately 338,000 ha of planted area (including plasma), with a mature area of 293,000 ha (including plasma). It has the largest mature planted area among its peers. In addition, the age profile of GAR?s trees favourably positions it to capture the upside in CPO prices.

Strong R&D background. Its SMART Research Institute attempts to maximize yield by undertaking the full range of research in agronomic activities including fertilizer optimization, soil viability, mapping surveys, crop techniques, herbicide usage and pest and disease control. GAR?s subsidiary PT Dami Mas Sejahtera (Dami Mas) cultivates high yielding seedlings for its own use.

Expanded into downstream. GAR owes, operates and manages its oil palm plantations, mills and refineries, as well as the facilities for the manufacture of end user products from CPO and PK. Among other things, this vertical integration allows GAR to maximize its profit margins by monitoring market prices and adjusting the output of CPO and refined palm oil products accordingly.

Initiate coverage with BUY. As China?s per capita GDP increases, demand for refined vegetable oil products will also increase. China has to rely substantially on imports to satisfy domestic demand. As GAR is one of the leading players in the vegetable oil and oilseed processing businesses in China, the group is well positioned to capitalize on strong domestic demand. While the stock has already appreciated 113% this year, we believe that the outlook remains rosy for GAR, essentially supported by high CPO prices. We are initiating coverage on GAR with a BUY rating and a fair value estimate of S$3.22. This represents a 25% potential upside from the last closing price of S$2.57.

 

It plans to issue about US$400 million worth of bonds which can be converted into new shares of US$0.10 each. The company, controlled by Indonesia's Widjaja family, said in a statement that proceeds will be used to buy shares of its subsidiary PT Sinar Mas Agro Resources and Technology Tbk, and to fund acquisitions or jvs with 3rd-party plantation companies.

Citigroup, BNP Paribas and UBS are joint bookrunners and joint lead managers for the issue.

 

karimchong, some more info for u, extracted from CNA Money Talk Forum...

1. INTRODUCTION

The Board of Directors (the ?Directors?) of Golden Agri-Resources Ltd (the ?Company?) wishes to announce that the Company is proposing a share split of each existing ordinary share of par value US$0.10 each ?Share?) in the capital of the Company into two (2) ordinary shares of par value US$0.05 each (?Split Shares?). As a result of the Proposed Share Split, each shareholder of the Company (?Shareholder?) will receive one (1) additional share for every Share held prior to the Proposed Share Split.

2. RATIONALE FOR THE SHARE SPLIT

? Increases trading liquidity of the shares. The reduced price of each Split Share following the Proposed Share Split will increase the accessibility and attractiveness of the shares of the Company, and hence encourage greater participation by investors, as well as provide greater trading flexibility for existing and potential investors.

? Broaden the Shareholder base of the Company. By improving the accessibility of an investment in the Company to more investors, it may also broaden the Shareholder base of the Company.

3. APPROVALS

Shareholders? Approval for the Proposed Share Split. The Proposed Share Split is subject to approval from Shareholders at an extraordinary general meeting to be convened. A circular to Shareholders will be despatched in due course to provide Shareholders with information relating to the Proposed Share Split and to seek Shareholders? approval for the Proposed Share Split. SGX-ST Approval for the Listing and Quotation of the Split Shares. The Proposed Share Split is subject to the in-principle approval of the SGX-ST for the listing and quotation of the Split Shares on the Official List of the SGX-ST. The Company will make an application to the SGX-ST for the listing and quotation of the Split Shares arising from the Proposed Share Split in due course.

4. ADDITIONAL INFORMATION

The Split Shares pursuant to the Proposed Share Split will be issued to Shareholders whose names appear in the register of The Central Depository (Pte) Limited or the Register of Members of the Company, as the case may be, as at the date of the closure of the Share Transfer Books and Register of Members (?Books Closure?). Notice will be given at a later date on the Books Closure in order to determine Shareholders? entitlement to the Proposed Share Split, if approved by the SGX-ST and the Shareholders.


BY ORDER OF THE BOARD
Simon Lim
Director
13 July 2007

 

The split is still pending approval from stockholder, probably thru a EGM, date not stated. Yes, if you hold GAR stock and if indeed approved, you will hold 2x the number. My feel is it is a calculated move by GAR to up its px potential.

 

When is this split going to happen? Do you think if we accumulate the shares now, we can entitle for the split?

Thanks in advance!
 

 

Basically a stock split makes it more attractive for smaller retailers to play, as the stock px is correspondingly reduce by 1/2. Note TP for GAR is $3.40 - 3.80 recently, thus it does have good upside potential.

 

it is normally felt that a company does a stock split only when they want more people to buy their share coz they feel they are doing good.
so since the market things the company is doing good, thats why its more likely the price will go
up before the book closure date.

 

Will the share split move the price upward.

 

Latest news ... SINGAPORE (Dow Jones)--Singapore-listed Golden Agri-Resources Ltd. (G17.SG), said Friday it is proposing a two-for-one share split.

If shareholders approve the proposal, they will receive one new share for every share held before the split.