GMG Global
GMG CHIONG tomoro -Flash floods hit southern Thail
Post Reply
921-940 of 966
GMG Global +4.8%; Tracking rubber prices higher
Written by Dow Jones & Co, Inc
Thursday, 09 December 2010 15:08
GMG Global (5IM.SG) is +4.8% at $0.325 trading with a higher-than-average volume of 32 million shares.
The rubber producer’s stock is benefiting from elevated rubber prices, with Tocom rubber futures nearing the 30-year highs hit last month; the gains are the result of tight supply in Thailand due to bad weather, and rising Chinese demand amid brisk auto sales, while the broader macro picture of stronger global PMIs, rising crude oil prices and loose monetary policy are boosting the liquidity flow into the commodities complex.
Another factor is news the UN Security Council Wednesday backed Ivory Coast opposition leader Alassane Ouattara as the winner of the nation’s bitterly disputed presidential election; GMG accounts for 12% of the country’s annual rubber exports.
A local fund manager says uncertainty over the political situation in Ivory Coast has the potential to impact GMG’s operations there.
1000 lots buy up at 32.5.... 
| GMG Global flat; Uncertainty over Ivory Coast poll |
Tags: Gmg Global
| WRITTEN BY DOW JONES & CO, INC |
| TUESDAY, 07 DECEMBER 2010 13:02 |
GMG Global (5IM.SG) flat at $0.310, in low volume of 2.4 million shares; stock continues to consolidate after sharp gains year to date, while unresolved presidential election in Ivory Coast raises some uncertainty over political risk in African nation (where GMG accounts for 12% of annual rubber exports). “Ivory Coast just had their long overdue election and it was duly overturned and the elected president sidelined, raising risk of further turmoil...I’m not sure if this will impact (GMG) given they have operated there for so many years and already and know how to navigate the politics,” says local trader.
Kim Eng, with no rating on stock, says counter’s 48% rise since June driven by strength in rubber prices; “as the only rubber play listed on the Singapore Exchange, investors can tap into GMG to capitalise on firm rubber prices.” Stock hit multi-year high of $0.345 on Nov 11, likely near-term cap.
|
/theedgesingapore/icomeireadipostFYIonly/////
From Kim Eng:
Hot stock
GMG Global (GGL SP, $0.31, NOT RATED) – We had highlighted GMG as a Hot Stock in June. Since then, the counter has risen by 48%, driven by the strength in rubber prices. The recent acquisition of Thai rubber producer Teck Bee Hang has given the stock further momentum. As the only rubber play listed on the Singapore Exchange, investors can tap into GMG to capitalise on firm rubber prices. GMG is also well-positioned to take advantage of exports into China.
Presumably GMG sees some value in buying out the competition, possibly at a good discount. This will aid in their expansion and future vertical integration. If dont see value, they would just let the competition die off rather than bail them out. So in the long term this is a positive thing, just need to hang on. This is organic growth done by M&A.
acquire a loss making co? loss making, then why acquire? do they have good plans or business strategy?
acquire a loss makin company maybe people r afriad of being dragged down?
wz_poems ( Date: 30-Nov-2010 12:13) Posted:
| wow wat happened to GMG..massive sell down..
|
|
wow wat happened to GMG..massive sell down..
what will be the next price?
Ai Lai CHIONG Liow ARh...
Heavy buy-up from seller: 2,456 lots...
GMG warming up engine ready for another blast off!
Better quickly load up b4 this rocket blast off leaving you behind salivating.....
GMG warming up engine ready for second blast off! 
In top volume again
Good opportunity to accumulate more during correction rather dan chasing at higher prices and buy more expensive... rubber shortage is a known fact... demand more than supply... only way is up in the long term...
- GMG Global
aims to grow its annual output of rubber by at least mid-single digit percentages for the three years after CY12
in order to meet rising demand from emerging markets.
kiasiDBT ( Date: 11-Nov-2010 18:36) Posted:
Dun worry lah... be patient... one day it will break out of 34.5 after all the profit-taking is well absorbed.
yummygd ( Date: 11-Nov-2010 17:37) Posted:
| too bad cant hold on to 0.345 |
|
|
|
Today's Straits Times, pg B2 - "Malaysia set to tackle more rain, flooding", "Contigency plans drawn up as monsoon season arrives".... expected to last till end of Feb or march...
Rubber prices bound to go up, better load up on GMG.
Singapore’s GMG Global sees rubber output growing
Written by Thomson Reuters
Thursday, 11 November 2010 14:50
Singapore-listed rubber firm GMG Global (GMGG.SI) aims to grow its annual output of rubber by at least mid-single digit percentages for the three years after 2012 in order to meet the rising demand for the commodity from emerging markets like China and India.
GMG Global, which is 51-percent owned by China’s state firm Sinochem International (600500.SS), expects its annual production to increase to 150,000 tonnes a year by 2012, up from 100,000 tonnes this year.
“The growth in certain. For the next three years (after 2012), we expect to see at least higher single-digit growth,” Chief Executive Officer Xian Ming told Reuters in an interview.
Shares of GMG Global surged 9.5% to $0.345 on Thursday after Shanghai rubber futures hit a record peak on supply concerns.
Asian physical rubber prices have also touched record highs recently, as severe flooding in Thailand has damaged rubber output and caused shipment delays.
This comes at a time when rubber supply is already low because of seasonal rain in Thailand and Malaysia, which disrupts tapping.
“In the very short term, there are some supply issues because of the weather and some countries will enter the winter period at the beginning of next year so yields will be lower,” said Xian.
However, he added that he expects the tight supply to ease in a few years, helped by new rubber planting in countries like Vietnam and Laos.
GMG has benefitted from the surge in natural rubber prices, and reported a net profit of $32.2 million for the nine months ended Sept 30, reversing a loss of $270,165 a year earlier.
To increase GMG Global’s rubber tonnage, the company is looking to acquire Southeast Asian firms that own processing plants, as well as to secure more land concessions in Africa, Xian said.
Currently, GMG has two processing plants in Kalimantan, Indonesia, and plantations in Cameroon and Ivory Coast with 42,560 hectares of land concessions.
It expects to add 800 to 1000 hectares of rubber plantation next year, and 2,000 additional hectares each year thereafter, as it recently set up a joint venture firm in Cameroon which will help it to secure more land concessions in the country.
Demand for natural rubber, which is used mainly in tyres of commercial vehicles, is expected to surge in the coming years with the economic boom of emerging markets like China and India.
“Automobile demand is increasing. For developing countries, they are doing more construction and infrastructure projects, so demand for tyres will increase,” Xian said.
