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pcscorpio ( Date: 18-Apr-2013 14:08) Posted:
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agree..thai suppose to release announcement today,anyone anynews?18/4
pcscorpio ( Date: 18-Apr-2013 14:08) Posted:
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enbloc ( Date: 18-Apr-2013 15:18) Posted:
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lost 3k..cut
they scared f and n wont delist... its a 50 50 bet.
if dun delist price shoots down, if delist price shoots back up.
It's time to settle down too on how best to settle those debt?.
In stocks, long or short also can make money. Same same.
@student/ipunter
Your postings are full of flaming and not useful to traders.Pls go and read up the individual company or issues before passing a sweeping statement.Who dont know it will be a knee jerk reaction with this kind of news.Is it necessary for you to add that it will drop trok trok??It only showed you are a sore loser trying to create panic.
From all yr postings I can sense that you are a frustrated trader and have lost heavily over the years.I think you have too many " mothers" . You are just here to past time and tcss.You are extremely happy and excited to see bad news affecting investors and you are always there to add salt to it for your own self pleasure. Stop all yr rhetorics and improve yr quality of posting so as to improve yr own image.This is yr saving grace.
student ( Date: 11-Apr-2013 22:07) Posted:
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Credit rating downgrade is old news
We are not concerned thatS& Phas downgradedThai Bev’s debt from BBB to BBB-on the grounds of increased debt and lower cash flowas the underlying business is sound with strong recurring cash flows.Debt levels were inflated purely because of the F& N-stake purchase.
Ahead, Thai Bev’s net gearing could improvefrom 1.2x to 0.8x if itswapsits 29% stake in F& N for cash plus F& N’s F& B business. We maintain our SOP-basedtarget price, estimates andOutperform call. We see catalystsfrom earnings delivery by the non-alcoholic beverage division and corporate restructuring.
What Happened
S& P has downgraded Thai Bev’s debt rating from BBB to BBB-,citing higher debt and lower cash flow as the reasons for a weaker financial risk profile.
What We Think
This event is not a negative. We highlighted when in ourinitiation that the F& N acquisition will push up debt levelsto > 1.2x. This downgrade by S& P is understandableas interest cover (EBIT/interest expense) did fallfrom 40xpre-F& N acquisition to an estimated 5.5x (FY13).We anticipate improvedinterest cover as debt levels ease, since free cash flow is in excess of business needs.
Furthermore,the domestic business is in a strong position,generating recurring cash flows. Whilstthe F& N acquisition have strained the balance sheet, we argue that Thai Bev is laying the groundwork for dominance ofthe beverage sector in Singapore, Malaysia and Thailand. This makes the business more valuable in spite of balance sheet strains.
We previously highlighted that Thai Bev could swap its 29% stake in F& N for cash plus F& N’s F& B business with TCC (see " Not just an elephant now" ). If that happens, the estimated net proceeds of S$1.2bn could be used to pay down debt, reducing Thai Bev’s net gearing from 1.2x to 0.8x.
What You Should Do
We keep our Outperform call.We see catalystsfrom earnings delivery by the non-alcoholic beverage division and corporate restructuring.