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Loaded more @12c today!!
This stock has been holding quite well since the few days of correction. I believe that it will return soon...
mkt is weak and short term holder tends to let go and buy back later...Hope GMG is strong enough to withstand the weakness and move forward slowly...PER at around 6.35 now and cash holding of around 40+mils$ with 0.5 cts yet to be givin out...High NR price good to the company profit margin and growth prospect is definately looking very bright...It's a real hidden gem and believe more analysis coverage to move in soon...Furthermore, only few listed NR company in the region...maybe interesting to see GMG in buying spree for other similiar trade company....
http://times.hankooki.com/lpage/biz/200702/kt2007021418124611860.htm
.......... the Chinese auto industry is expected show rapid growth after its biggest boom in 2006, when it achieved a 7.22 millionvolume increase, up 25 percent year-on-year............
Look like demand of NR will just continue to increase at a rate that is much faster than the rubber trees can be planted!!
GMG profit rise 262% to EPS 2.13 cent
Dividend per share = 0.5 cent. (First time pay dividend )
Profit rise mainly due to higher rubber price and higher production volume.
Strong cash flow of $44 million.
Gearing = 0.18 x, expect net cash in 2007 if no major investment.
Director comment ?
?Behind our sterling results is a more revealing story of a global supply demand imbalance and the market readjustment of a fairer and rational price level for producers. Lower rubber prices and other factors during the late 1990s have led to a lack of aggressive new rubber plantings and more plantations being converted to oil palm. Rubber trees generally take seven years to mature, so new plantings that are currently underway can only be tapped in 2015. Coupled with growing demand from the emerging economies of China and India, we are likely to see strong rubber prices over the next 7- 10 years driven by strong fundamentals. Data from the International Rubber Study Group in 2006 showed that natural rubber is expected to face acute shortage towards 2010, as more supplies are only expected after 2015. These trends bode well for GMG and with our proven plantation management expertise, manufacturing capability and international experiences, we will seek to capture the right growth opportunities and expand our agro presence ?
So far so good....seem like the solid fundamentals help a lot to defend the share price!!