Towards Financial Freedom
Golden Agri Resource - BUY
- The company is raising almost US$400 mln (net of expenses) via a 5-year 2.5% convertible bond issue, with a conversion price set at 88.96 cents, ie 28% conversion premium.
- Given the company's ambitious program in the African continent, and where interest rates are, it is no surprise Golden Agri should want to raise capital.
- The issue is mildly positive for the range-bound stock (eg weakish palm oil prices have not been helpful):
a. the 561.11 mln new shares to be issued in the event of full conversion represent 4.4% of current issued capital of 12.84 bln shares.
b. based on the 1.84 cent dividend for 2011, yield on the stock is 2.6%.
- Largely because of the weak palm oil prices, Golden Agri's profit fell 40% in Q2 '12.
- We have a BUY on the stock.
Source: Lim & Tan Securities - 7 September 2012
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
RHB Investment Research Reports
2
CEO Morning Brief
Singapore Airlines Vows to Expand Capacity Despite Rising Competition
3
RHB Investment Research Reports
Venture Corp - Soft Demand Delaying 2H Recovery; Maintain BUY
4
5
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
