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woohooooooo... vol smacking >2 mil in an hr... looking gd!..
yeah one of the few green counters in the pool of red...
probably selling was overdone... olam is still a proxy to commodities play.."Olam should generate growth of 25% to 30% per year regardless of economic conditions;"
this statement prob have to take it with a pinch of salt..
Olam International's selloff this month on concerns hefty capital raising will dilute earnings is overdone, analysts say, according to WSJA report, as company expected to continue posting strong profit growth amid high commodity prices. Analysts expect demand for agricultural products will keep increasing while output remains restricted due to past underinvestment in commodities, rising urbanization leading to loss of farmland; also, cite business model, predictable earnings in a volatile industry. Dow Jones survey of 8 analysts found average target price of $3.40. "People are paying for its sustainable earnings and lack of volatility," says Daiwa analyst Chris Sanda; "Olam should generate growth of 25% to 30% per year regardless of economic conditions;" sets highest target price in poll, at $4.01.
If you can bear w/ simple translation, it says yesterday's share price was $2.53, dropped 5 cents. Recommend BUY w/ target price $3.51.
Olam国际 评级：买入 目标价：3.51元
分析师认为集团接下来会延续其并购策略。近15个月，集团共进行、设立了8项收购或合资企业。集团近期筹集的资金也有助于接下来的并购计划。分析师维持对该股的“买入”评级，目标价定在3.51元，比现水平高出约30％。分析师认为目前的股价对于长期投资者来说是买入的好时机。集团接下来发出的任何并购消息，将成为该股重新评价的催化剂。Olam国际昨日收报2.53元，跌5分。
（星展唯高达证券研究）
CONVERTIBLE BONDS DUE 2013 – FINANCIAL EFFECTS OF THE ISSUE
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_3CFF2564F985DEF248257463001B3D53/$file/09Jun08-SGXAnn_Convertible_Bonds-Finance_Effects.pdf?openelement
Assuming full conversion of the Convertible Bonds
* Total number of shares will increase by 16.84% (from 1,556,287,000 to 1,818,332,000)
* The EPS will be diluted
* NTA per share will be increase to $0.59
BT: Fri,June 6, 2008
Olam shares slide on news of convertible bond issue
On Wednesday, the stock, which has benefited from the market's play on commodities stocks, rose seven cents or 2.4 per cent to $2.98 on talk of a major acquisition in Ivory Coast's cotton sector before trading was halted in the afternoon pending an announcement.
As it turned out, the announcement yesterday was not about an acquisition but instead was about the successful launch by Olam of a convertible bond issue to raise US$300 million, with an upsize option for an additional US$100 million.
Reflecting possible market disappointment, the stock dived as much as 27 cents or 9 per cent to an intra-day low of $2.71 after trading resumed. It then closed at $2.76 for a loss of 22 cents or 7.4 per cent. About 20.5 million shares changed hands.
Investors were also seen as being concerned about potential dilution from the convertible bond issue. In a research report yesterday, DBS Vickers cut its target price for Olam from $3.80 to $3.51 to account for this scenario.
Due in 2013, the bonds announced by Olam yesterday bear an annual coupon of one per cent and a yield-to-maturity of 4.5 per cent per annum. Bondholders can convert the instruments into ordinary shares of Olam at an initial conversion price of $3.8464. This represents a 30 per cent premium to the reference share price of $2.9588 at the launch.
| 14:24:20 | 2.780 | 26,000 | Buy Up |
| 14:24:20 | 2.780 | 3,000 | Buy Up |
| 14:24:10 | 2.780 | 2,000 | Buy Up |
| 14:24:10 | 2.780 | 5,000 | Buy Up |
| 14:24:10 | 2.780 | 2,000 | Buy Up |
| 14:23:57 | 2.780 | 3,000 | Buy Up |
| 14:23:57 | 2.780 | 3,000 | Buy Up |
| 14:23:47 | 2.780 | 2,000 | Buy Up |
| 14:23:46 | 2.780 | 5,000 | Buy Up |
| 14:23:45 | 2.780 | 5,000 | Buy Up |
| 14:23:35 | 2.780 | 11,000 | Buy Up |
| 14:23:35 | 2.780 | 11,000 | Buy Up |
| 14:23:25 | 2.780 | 20,000 | Buy Up |
| 14:23:22 | 2.780 | 1,000 | Buy Up |
| 14:23:21 | 2.780 | 1,000 | Buy |
Aiyah, more downside expected, heading south.
According to cotton sector officials, the assets acquired by Olam consist of around 100,000 hectares of cotton fields, cultivated by around 50,000 growers, and 4 ginning plants that remove seeds from raw cotton, located in the north of Ivory Coast.
Analysts have also linked Olam with a potential bid for Australian dairy producer Dairy Farmers, valued between A$800 million and A$1 billion.
"We have been approached. Our M&A team has looked at it but to the best of my information no formal bid has been made by us," Kumar said.
The commodities firm on Wedissued US$300 million worth of convertible bonds. Proceeds would be used to fund working capital, acquisition and capital expenditure, Kumar said.
He also said the funds raised will replace short-term working capital and would not push the company's gearing up until the money is used. Kumar added Olam currently has a 3x long-term debt to equity ratio.
Olam International said on Thur it has submitted a bid for assets belonging to Ivory Coast cotton producer La Compagnie Cotonniere Ivoirienne (LCCI) but the deal has not been completed yet.
"We can confirm that we have submitted our bids for the transaction but the transaction is not complete," said Ravi Kumar, chief financial officer of Olam.
According to an official legal notice published in an Ivory Coast government daily, Olam has bought cotton field and ginning plants from LCCI, worth just over 8 billion CFA francs (US$19 million).
"I will not be able to confirm that number to you because it's a closed bid," he told reporters.
short short short short...
really shit liao... out of sudden......
o drop 20cents shit...............
no, not a good news, will drop alot as the issued bond will dilute the earning.... shit liao.....
good New ?
SINGAPORE, June 4 (Reuters) - Commodities firm Olam International gained as much as 2.4 percent to S$2.98 with 745,000 shares traded after it bought assets of an Ivory Coast cotton producer.
New Issue-Olam International prices $300 mln 2013 bond
Convertible bond priced on Wednesday.
Borrower Olam International Limited
OLMIF.PK
Issue Amount $300 million
so far no news yet, but i know got ppl que to sell for big qty already.....
How come Olam halt trading after lunch?
I'm guessing TH is temporary halt since the price is not moving...
anybody got any insight?
ABIDJAN, June 3 (Reuters) - Singapore's Olam International Ltd (OLAM.SI: Quote, Profile, Research) has bought a major stake in Ivory Coast's cotton sector by purchasing the assets of bankrupt cotton producer La Compagnie Cotonniere Ivoirienne (LCCI).
The Ivorian state sold the LCCI assets to Olam for just over 8 billion CFA francs ($19.02 million), according to an official legal notice published this week in the government daily Fraternite Matin.
The West African country's cotton sector is struggling to get back on its feet after a 2002/2003 civil war in which the country's northern half, where cotton is grown, was seized by rebels. A national reunification process agreed in a March 2007 peace deal has set presidential elections for Nov. 30.
The assets acquired by Olam consist of around 100,000 hectares of cotton fields, cultivated by around 50,000 growers, and four ginning plants located in the north of Ivory Coast, according to cotton sector officials.