Olam Intl   

Ramping up its capex

noble chiong from 1.85 to 1.89

olam should catch up..from its oversold position..

 

Olam technically oversold

will look at it when it falls to below $3..

 

 

Olam International, Buy S$3.23 , Bloomberg: OLAM SP
Building up momentum
Price Target : 12-Month S$ 3.60 (Prev S$ 3.30)
By: Ben SANTOSO +65 6398 7976


·	Earnings model revamped; FY11/12F raised 19%/4% on stronger
contribution from Almonds, Gilroy and Crown Flour/SK Foods ramp up

·	Expect strong earnings growth momentum to continue over the next 3
years

·	CB2 mandatory conversion imputed; US$500m CB3 in the money but
unlikely to be converted soon

·	Maintain Buy, DCF-based TP adjusted to S$3.60 (WACC 8.8%, TG 3.0%),
offering 13% total return

ERICHAN      ( Date: 15-Oct-2010 09:20) Posted: Any good news for this counter? what's the reason for it to fly again these two days?

 

Any good news for this counter? what's the reason for it to fly again these two days?

 

Good news for Olam holders! SINGAPORE, Sept 24 | Thu Sep 23, 2010 7:52pm EDT (Reuters) - Singapore commodity firm Olam International (OLAM.SI) said on Friday it was in preliminary talks with France's Louis Dreyfus for a possible collaboration that could take the form of a merger. The statement came after Les Echos newspaper reported on Thursday that Louis Dreyfus was considering a merger with Olam and a listing of certain activities among possible options to expand the family-owned company. [ID:nLDE68M0YG] (Reporting by Harry Suhartono, editing by Sugita Katyal)

 

up 20c..now $3..

wow!!

ozone2002      ( Date: 13-Sep-2010 10:44) Posted: look @ olam fly up 12c

 

Let it run up and wait for next round for short. 

 

look @ olam fly

up 12c

 

Olam followers, i sold today to take small profit. In times like this, small gain also feel good. 

 

Crazy man! Jump until so high.

I don't even dare to touch.

 

 

personally i will enter 2.66 level

there's no best entry price

 

Thanks for the link.

What is the best entry price? P/s advice.

ozone2002      ( Date: 27-Aug-2010 15:03) Posted: would prefer to go in on pullback.. surge too much too soon for 1 day..

 

would prefer to go in on pullback..

surge too much too soon for 1 day..

 

 

never notice this stock as too focus on GP. Is it too late to go in now? P/s advice. Thanks.

ozone2002      ( Date: 27-Aug-2010 13:47) Posted: 2.71

 

2.71

 

chiong ah!!! 2.67

commodities is in play...

ozone2002      ( Date: 18-Aug-2010 14:27) Posted: rock steady 2.58

 

recently olam seems to be investing in quite a few of plants.

 

Olam invests $58m in Ivory Coast cocoa plant

The commodities firm Olam is investing US $43.5 million ($58.9 million) to set up cocoa-processing and warehousing facilities in the Ivory Coast.

Its cocoa-processing plant in the city of Abidjan will process cocoa beans into products such as liquor, butter and cake.

The plant is expected to be commissioned by the first quarter of 2012, Olam said.

By the end of its second year of operation in 2014, it is expected to produce 48,000 metric tonnes of cocoa products and achieve a turnover of US $175 million, Olam said.

The primary processing facility in San Pedro will be a drying, cleaning and sorting plant along with the necessary storage facilities to ensure that Olam continues to expand and develop its role in the bean export business in the African country.

The Ivory Coast is the world’s largest cocoa producer accounting for 1.3 million metric tonnes or 40 per cent of global production.

 

Olam International, S$2.55; BUY; OLAM SP by DBS

Investing in greenfield cocoa processing facility

Price Target: S$3.29
By: Ben Santoso 65 6398 7976
Olam today announced that it is investing in US$43.5m greenfield cocoa
processing facility in Abidjan (US$38.5m) and a primary processing and
warehousing facility in San Pedro (US$5m), Cote D’Ivoire. This would be in
addition to the group’s existing cocoa processing facility in Nigeria
(15,000 MT) as well as Asian operations on lease basis.


The proposed facility is designed to process c.60,000 MT of cocoa beans
into c.48,000 MT (80% yield) of cocoa liquor, butter and cake with a split
of c.24,000 MT liquid and 24,000 MT solids. The group is targeting to
employ 1:1 debt to equity ratio, implying a debt funding of c.US$22m for
the project.  Completion is scheduled for 1Q12; and the group is projecting
a turnover of US$175m by end of FY14 , delivering EBITDA margin of 10-12%.


Out of 1.3m MT of cocoa produced in Cote D’Ivoire (i.e. 40% of global
production), Olam originates approximately 80,000-90,000 MT of cocoa beans
annually. We understand that the new processing facility would process some
of these volumes – of which the group should increase the net margin from
c.2% (origination) to c.4% (processing). Hence, calculated based on the
total cost of the processing facility alone, this represents 18% return.


While Olam would probably be competing with its existing customers, we
understand that the group had already undertaken feasibility studies to
ensure adequate outlets. Having been established in Cote D’Ivoire since
1994, Olam is included in top five originators and has strong presence
there, where only c.400,000 MT of cocoa beans are processed. So there is
headroom for growth. Cote D’Ivoire is due for an election on 31 October
2010; and the outcome is not expected to interfere with commercial
activities of the country, where c.1m farmers are dependent on the cocoa
industry.


Cocoa futures is currently traded on LIFFE at ￡2,085/MT. We understand that
at a price range between ￡1,850/MT and ￡2,250/MT supply is being
stimulated, although cocoa is still in a tricky situation with regards to
long-term supply, whereby at below ￡1,800/MT, the group believes that
supplies may start to come down again.


We are leaving our forecasts unchanged for now, as we believe the impact of
this investment is insignificant (i.e. cost is c.4% of cash & cash
equivalent as at end of March 2010 and c.1.4% of our FY14 net profit
expectations). Our Buy rating on the stock and TP of S$3.29 are reiterated.