Olam Intl   

Ramping up its capex

strong buy for this counter.

 

Rule of thumb: it is good to discount abt 30% off TP because target prices are projected where things are constant (i.e. as per what will happen in their report) when it is seldom so

 

Dropped 0.160 today. Now below 3. Hmmm...Any idea why?

 

Macquarie raises Olam International target price to $3.82, estimating successful execution of West African JV with Wilmar will add $0.25 to share price.

Olam and Wilmar are setting up a 50/50 JV in Africa to initially acquire plantation, refining and branded consumer oil assets. Olam's strong local market knowledge in Africa and Wilmar's strength in oilseeds, the 2 together could form a formidable entity in the soft commodities space in Africa.

 

guess would be good to load up at 3.18....and below........patiently waiting..

 

does that mean is good to load up at this level or wait till EX div? any suggestion of whats the good entry level now? 

 

Olam International plans to invest US$45 million in an instant coffee factory in Vietnam to tap rising demand from Asia and Europe. The plant could produce 3,700 tonnes of instant coffee a year from the first quarter of fiscal '09, with further expansions later, the company said in a statement.

Expanding in Vietnam, the world's largest producer of robusta coffee, will help it tap the global market for unbranded instant coffee that Olam says is worth US$1.38 billion a year. The price of robusta coffee, used in instant products, has risen 30% this year.

'The overall soluble coffee market has been growing at 4% a year over the last 5 years with strongest growth coming from emerging economies in these regions,' said Vivek Verma, Olam's MD for coffee, in the statement.

 

DJ MARKET TALK: Olam Intl May Rise On Indonesia Sugar Refiner Buy

2345 GMT [Dow Jones] Olam International (O32.SG) may rise on news it's acquiring PT Dharmapala Usaha Sukses, an Indonesian sugar refinery for US$12.6 million. Olam will invest a further US$12 million to upgrade production efficiency to 650 tons per day. Company says "PT DUS is an attractive proposition given its superior port-based location in Central Java compared to other refineries and its access to a large and growing market." Expects PT DUS to be profitable in FY08; targeting earnings of US$4-million -US$5 million per year by end-FY09 when refinery reaches full capacity. Shares closed +1.9% at S$3.20 yesterday. Resistance at Sept. 24 intraday high of S$3.24. (KIG)

 

DJ MARKET TALK: CS Keeps Olam At Outperform; Ups Target To S$3.80

0028 GMT [Dow Jones] STOCK CALL: Credit Suisse keeps Olam International (O32.SG) at Outperform following acquisition of Naarden Agro; raises target to S$3.80 from S$3.75. Says deal "is small in terms of deal size, but reaffirms its inorganic growth strategy." Adds "we see immediate cost synergies, given Olam's origination strengths. This entry into industrial caseins also offers a platform for diversification into much larger edible grades caseins market, and should augment growth for Olam's dairy product segment." Notes Olam's steady earnings profile is attractive in current volatile market. Shares closed +2.5% yesterday at S$3.34.(KIG)

 

Olam buys Naarden for 3.3 million euros, shares rise.

But - remember, buy on rumour, sell on news. Good luck.

 

Move up today. Any news?

 

hello choohian..Much thanks for the info..i saw it too on the Business Times on Monday.

Olam is recommended by POEMS? What rating? As of today the STI went up by almost 70 points and it remained unchanged for Olam. Maybe it will rise when it is approaching the x-dividend date...Still waiting patiently for it to go to the 3.20+ mark...

Kenneth

 

eye-sight failing me, brains not working but watching Olam as recommended by Poems.

 

chewken, sorry again. It should be 1.75 cents for special tax exempt, and the same of 1.75 cents for first and final dividend.

 

chewken, sorry, ex date should be 2 Nov, payment date is 16 Nov. 07. Good luck.

 

chewken, just saw your post. You might have found out  the dividend for Olam. Anyway, I am giving you the info taken from Business Times, Monday,3 Sept.

Olam Int.  - payment 0.175 cents Ex date 21 Nov 07 ((Special tax exempt (one tier))

Olam Int. -payment 0.175 cents Ex date as above ((First and final tax exempt(one tier)).

You should be able to call up your broker for such info.

 

Thanks for the optimistic news man..I saw from the net that there is a cum dividend on Olam..You know when the dividend will be paid out? How much per share?

Even though as what you said the net profit is 25%, it went up a high of 3.18 today then it slides down like a child sliding down a slide to 3.04. Guess it may slide down to below 3 dollars even. At least there is a dividend for people like me to look foward too after waiting for so long..hmmm...

Thanks guys..

Kenneth 

 

As expected, the net profit in line with my expectation between 20%-30%, which is exactly 25% this 2nd quarter! More to come.

 

 

I guess OLAM annual results were due today... any idea if the results have been declared ?

 

Sorry JackJames, I meant the buy up and sell down thingy.

 

Thanks!