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Anybody can shed some light on what is causing the drop?
zhuge_liang:
The price didn't go up much in the morning.
I notice there were many more buyers willing to pay at a higher price during the afternoon session than in the morning.
Wonder if it had anything to do with your posting.
Report from CIMB.
Olam is moving upstream and midstream.
Selective backward integration into plantations. Olam plans to invest directly in plantations such as palm oil and rubber in Africa, peanuts in Argentina and sugar in Brazil and India to control supply, thereby benefiting from high commodity prices as a result of structural changes in the agricultural commodity sector.
Forward integration into value-added processing, such as ingredient manufacturing and supplying to private labels. While both backward and forward integration would increase asset intensity and appear to deviate from its previous asset-light policy, Olam intends to remain asset-light by hiving off its fixed assets to an asset trust.
Minimal impact of price movements. Olam currently does not benefit from high agricultural commodity prices because: 1) 80-85% of its stock is sold forward or hedged, leaving only 15-20% subject to price movements; and 2) Olam does not take a view on prices.
Target price reduced to $3.29 from $3.48. They have left their FY08-10 net profit forecasts intact, but now peg their target price at 25.5x CY09 P/E (15% discount to 30x CY09 P/E) from their previous target of 27x CY09 P/E (10% discount to 30x CY09 P/E) in view of potential execution risks in moving into plantations. Fundamentals, however, remain strong with management having a clear strategy for organic and inorganic growth. Reiterate Outperform.
Is it time to look at Olam?
Olam International rose after the commodities firm posted a 25.8% rise in second-quarter net profit, traders said.
Credit Suisse analyst Su Tye Chua gave an "outperform" rating to Olam's stock, citing strong demand for agricultural commodities and expansion into new products.
"The group's fundamentals remain strong with management having the track record and clear strategy to deliver organic and inorganic growth," CIMB analyst Tan Wei Ling, who also gave the firm's stock an "outperform" rating, said in a research note.
good announcement.... outstanding performance.. i guess despite DJ in red.. if STI follow suit tmr.. tis counter might shine.. i pray...... lolz..
Vested.
Applause James. I beleive in FA too.
this is the situation for a good FA stock, how low it can go? kena short kau kua to 2.46.. now rebound beautiful to 2.70 level... so far, this counter do a U -turn, be it a technical rebound or deadcat rebound you want to say... this company is going to sky high back to 3.50 level..
same to those good FA stocks I mentioned.... contra nowadays can't earn much, so those quality stocks reach such a low price, just grab and have a cup of coffee and read warren buffet books, ha ha..
No change in TA signals. Still looks bearish.
Name of Announcer: Suresh Sundararajan Designation: Senior Vice President, Corporate Affairs Broadcast date: 13-Dec-2007 Broadcast time: 18:44:49
COMPLETION OF ACQUISITION OF PT DHARMAPALA USAHA SUKSES
The Company is pleased to announce that the Acquisition was completed. Followingthe completion of the Acquisition, PT Dharmapala Usaha Sukses becomes a directwholly-owned subsidiary of Far East Agri Pte. Ltd. (a direct wholly-ownedsubsidiary of the Company) and an indirect wholly-owned subsidiary of theCompany.
Wonder will this boost this counter a lil..
Thanks Singaporegal.
Was thinking of trading this counter for short term rebound tho...
Cheers.
Hi victor_lee,
I think this counter is still looking bearish. We should look at its overall trend. Usually one day's price movement doesn't mean very much.
Olam International has been 'caught in the cross-fire' between environmental groups and the World Bank in Africa, its CEO said 10/12.
The International Finance Corporation (IFC), the private lending arm of the World Bank, said over the weekend that it has decided to sell its 3.4% stake in Olam after the company was accused earlier this year by Greenpeaceof trading illegal timber in Congo, a charge that Olam denies.
In a statement dated Dec 8, IFC said that it is 'committed to good international practices in environmentalsustainability'. It added that the decision was 'driven by policy considerations and is notindicative of IFC's opinion on Olam's financial position and performance, present orfuture, or the merits of any investment in Olam'.
Speaking from Paris, Olam CEO Sunny Verghese told BT 10/12 that the company had been targeted by environmental groups that were unhappy with the World Bank's policies in Africa's forestry sector. Of the companies operating in the Democratic Republic of Congo's forestry sector, Olam was the only listed company and the only one in which the IFCowned a stake, he said.
'We were a high-profile target.'
Singaporegal,
Does today's price movement signify reversal? Seems quite bullish with the closing bell buy up...
TA charts are very bearish. Acc/Dist and Chaikin heading southwards.
copied tat wif tks Victor.
Extracted from IFC website;
IFC Press Statement
Corrie Shanahan
Tel: 202-294-4697
Email: cshanahan@ifc.org
Washington D.C, December 8, 2007 -- IFC has advised Olam of its decision to sell its equity stake in Olam International Limited. IFC, a member of the World Bank Group, is committed to good international practices in environmental sustainability.
IFC's decision is driven by policy considerations and is not indicative of IFC's opinion on Olam's financial position and performance (present or future) or the merits of any investment in Olam.
victor.. wat's IFC to sell stake in company?? Can eloborate?
AFX;
Singapore's Olam International shares lower on news IFC to sell stake in company
Alamak.. wat happen to this counter... was 2.77 before... and hitting back abv $3 now.. was it really becos of those reports tat the aquisitions 2 earns 1 loss tat brings it to tis level? Hmm...