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money cow u know that doing business it is more important to have cash in hand??den be debt free?? cause for a company bent of growth prospect they need alot of cash they can utilise. thats why they rather be in debt even though they are able to pay it off n be debt free.
moneycow ( Date: 26-Apr-2010 11:02) Posted:
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The cash is retained to fund possible capex and/or mergers/acquisitions. If strategic buys cannot be done with the cash, then of course they will pay off the debt. The loans may have been obtained at favourable rates back then, hence giving up now may incur more capital costs down the road if there are good strategic purchases. This all boils down of opportunity costs vs interest costs. Its not always about saving interest costs. There may even be opportunities of arbitrage but that is another thing altogether. Most important that the debt is manageable and that company is not over leveraged; operating cash flows can meet the interest obligations.
moneycow ( Date: 26-Apr-2010 11:02) Posted:
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Got so much cash, why don't pay all debts and remain debts free and saved on the interest payment ?
yummygd ( Date: 26-Apr-2010 10:18) Posted:
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was lucky man had i not read the editorial colume of businesstimes i will miss out. its a really good company just remember peeps all blue chips started out as small or mid cap. this GMG is the kind that will grow enormously in years to come(god willing) look at what the other forumers posted on its very healthy balance sheet.
jchong71 ( Date: 26-Apr-2010 10:34) Posted:
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Good for you yummygd! I like the long term prospects of GMG, especially with the support of Sinochem! Once they can sucessfully tap into the China markets and maximise all of their plantations, this guy should rocket to the moon, never mind its 3.8bn shares (51% safely tucked away with Sinochem) float. Hopefully in time to come its growth will mirror that of Wilmar!
yummygd ( Date: 26-Apr-2010 10:18) Posted:
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gmg is an extremely tasty company i invested when it was 0.145 so now profit liao
jchong71 ( Date: 25-Apr-2010 22:19) Posted:
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Correction, total debt fell.
The total cash (cash + fixed deposits) = $137.6m exceeds total debt of $54.7m
so i am not concerned on the gearing.
In fact total fixed deposits of $95.6m can cover TOTAL liabilities of $84.2m
camalotnite ( Date: 25-Apr-2010 21:42) Posted:
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total debt also creeping up slowly. scared. not vested
GMG posted quite a set of impressive Q1 results up to 31st March 2010:
Nett income S$7,572,661 for 3 months. (should have been S$12.6m if not for forex loss of 3.4m and derivative loss of $1.6m)
EPS S$0.16
NAV S$0.1006
Higher revenues due to big jump in rubber prices averaging S$3,902/ton compared to $2,467/ton in Q1 2009.
Unfortunately, GP did fall to 27% from Q1 2009 of 30% with higher costs in raw materials.
Looking forward to greater numbers when they gain more market share in China through Sinochem and hopefully less of such big derivative/forex losses.
how come no interest in this one here? strange.me in.
DBS say this stock is overstretched..!!
ride the trend..
if it falls..dump it!
DJ CORRECT: MARKET TALK: GMG Global +17.5%; Roadshow In Shanghai
0726 GMT [Dow Jones] (An item at 0709 GMT misstated the company's 3Q09 loss. The correct version is as follows :) GMG Global (5IM.SG) +17.5% at S$0.235 on huge volume of over 206 million shares, most active on SGX, as interest piqued by natural rubber producer's 1-day roadshow now held in Shanghai. "They are meeting fund managers from Europe, the U.S., China and Hong Kong to drum up interest in the company," GMG spokesman tells Dow Jones Newswires. GMG said in February it plans to double output in 2-3 years by seeking M&As, leveraging on parent Sinochem International's (600500.SH) platform. Stock has doubled year-to-date on hopes of firm rubber demand as global economy rebounds from financial crisis. Recovery evident in company returning to profitability in 4Q09 with S$5.0 million earnings, vs S$371,696 loss in 3Q09, due to higher rubber prices. Based on technical indicators, CIMB says stock has room to go higher as run-up accompanied by strong volume, but suggests those yet to enter to wait for pullback given possibility of "shallow consolidation" over next few days; "the bulls need to be cautious if the intraday low of S$0.205 is violated."
How many analyser predict it will be 2nd wilmar?They base on wnat source?If they so chun , can they predict coming 4d & Toto. Do not blindly follow ......just my 2 cents.
Based on MACD analysis , now is uptrend.. we should ride it to the top....
thing is i do not have a TP of my own on this counter and i think no one else have given a TP also....so what should one do???Just ride it till it ends??
Tomorrow will be cheong till 0.230 or higher...
Is this one consider a S-chip? It will take years for it to become a Wilmar....hopefully. Kiv.
if i cant sell at 0.245 i will keep. see how lor if say until like another wilmar sell at 0.245 also too cheap. haiz. wait till kingdom come hahahaha
still can enter now at $0.225
FREAKING RICH company..
with $169 million in cash..
with parent SINOchem baking and potential wilmar in the making..
this could fly to the heaven..