Breaching RSPO policies
The Roundtable On Sustainable Palm Oil (RSPO), an industry organization that promotes the growth of sustainable palm oil products, said that Smart has breached its policies and that the palm oil producer's membership with RSPO is at risk. Smart is a subsidiary of GAR. RSPO said on its website that its Grievance Panel has reviewed Smart's independent verification report and found that there has been non-compliance with RSPO Code of Conduct. RSPO also urged GAR not to publicly suggest that it is in the process of obtaining certifications for its operations and not to claim that it is planning to become a member of RSPO. GAR is currently not a member of RSPO and the latter has yet to receive any membership application from GAR. Responding to this, Smart said it is committed to sustainable palm oil production and will work towards RSPO's requirements. Boycotting palm oil purchases
Since the release of the report in August, where its findings have been widely challenged by Greenpeace, Burger King has announced its decision to cancel palm oil purchases from Smart while IOI Crop has decided not to resume its purchases from the company. Global food companies Nestle and Unilever have earlier suspended their sourcing of palm oil from Smart.
More complications The comments by RSPO will further complicate GAR and Smart's efforts to regain customer confidence after Greenpeace accused the group of unsustainable oil palm development. Collectively, these food companies only accounted for less than 3% of GAR's total revenue. Although financial impact is marginal, GAR's reputation has been significantly affected. This longdrawn issue on sustainability may cap GAR's share price performance.
Maintain Hold on the stock.
Monday, September 27, 2010
Friday, September 24, 2010
Malaysia - Advanced Emerging Markets
FTSE Group has promoted Malaysia to its Advanced Emerging Market status in the FTSE Global Equity Index Series. All Malaysian indices and sub-indices would migrate from June next year. Malaysia was previously ranked Secondary Emerging Market indices, Bursa Malaysia said in a statement yesterday. Meanwhile, Securities Commission chairman Tan Sri Zarinah Anwar in a statement said the move underlined the global recognition of the regulatory framework of the Malaysian capital market and could lead to greater international participation in the Malaysian market. (Starbiz)
Sunday, September 19, 2010
Genting Hong Kong Ltd : High Hopes for Philippines
Profile :-
• Genting HK was formerly known as Star Cruises Limited. The Company is a leading global leisure, entertainment and hospitality enterprise, with core competences in both land and sea-based businesses:
• Key brands are 1) Star Cruises - Asia-Pacific, 2) Norwegian Cruise Lines (“NCL”) - A 50% joint ownership alongside Apollo and TPG and 3) Resorts World Manila (“RWM”) - Manila, Philippines; joint partnership with Alliance Global Group under Travellers International Hotel Group, Inc.
Strong Interest in Genting HK
• CIMB hosted Genting Hong Kong Ltd (Genting HK) last Thursday for 2 sessions over lunch. The first session was for high net worth clients and the second session was for retail investors. Participants managed to learn more about Genting HK’s restructuring and future plans as well as the outlook for the gaming industry in the Philippines.
• How’s the response? As you can see from the pictures we took, interest in Genting HK was overwhelming. Interestingly, despite no lunch being provided, retail investor participation was strong and the Q&A session ended at 2.50pm. Amazing, considering that the retail session started at 1.30pm.
Watch RWM
• RWM is Genting HK’s first foray in a land-based attraction. RWM opened its doors to the public in August 2009, and is part of the premier leisure brand, “Resorts World”, representing a flagship integrated leisure and entertainment complex featuring 3 hotels including a six star all-suite Maxims Hotel, an iconic shopping mall, 4 high end cinemas and a multipurpose performing arts theatre.
• The land-based casino operations bear watching as lower operating cost in the Philippines and lower gaming tax could see faster payback for the investments in RWM.
• In addition to a captive local gaming population, RWM will also be able to attract players from South Korea, coastal China and Taiwan.
Interim Financials
• 1H10 turnaround with profit of US$11.3m versus FY09 loss of US$28.3m and 1H09 loss of US$35.3m.
• Annualised EPS is 0.32 US cts which translate into a P/E of 137.5x which is typical of companies staging a turnaround.
• Historical BVPS is US$0.27 or a historical P/BV of 1.6x.
• No interim DPS declared.
Profit Momentum Returning
FY 08 - -101.1
1H FY09 - -35.3
2H FY09 - 7.0
1H FY10 - 11.3
Technical Analysis
• The stock broke out of its bullish flag pattern in July and has rallied about 123.6% of the previous run prior to the flag pattern. The stock should have more upside in the longer term, likely to test US$0.505, the 138.2%FR level.
• However, its RSI is showing a bearish divergence and already overbought, suggesting that a minor pullback is likely.
• Support is seen around the US$0.40 levels.
• If prices fall below US$0.37, it would mean that a deeper correction is taking place.
• Genting HK was formerly known as Star Cruises Limited. The Company is a leading global leisure, entertainment and hospitality enterprise, with core competences in both land and sea-based businesses:
• Key brands are 1) Star Cruises - Asia-Pacific, 2) Norwegian Cruise Lines (“NCL”) - A 50% joint ownership alongside Apollo and TPG and 3) Resorts World Manila (“RWM”) - Manila, Philippines; joint partnership with Alliance Global Group under Travellers International Hotel Group, Inc.
Strong Interest in Genting HK
• CIMB hosted Genting Hong Kong Ltd (Genting HK) last Thursday for 2 sessions over lunch. The first session was for high net worth clients and the second session was for retail investors. Participants managed to learn more about Genting HK’s restructuring and future plans as well as the outlook for the gaming industry in the Philippines.
• How’s the response? As you can see from the pictures we took, interest in Genting HK was overwhelming. Interestingly, despite no lunch being provided, retail investor participation was strong and the Q&A session ended at 2.50pm. Amazing, considering that the retail session started at 1.30pm.
Watch RWM
• RWM is Genting HK’s first foray in a land-based attraction. RWM opened its doors to the public in August 2009, and is part of the premier leisure brand, “Resorts World”, representing a flagship integrated leisure and entertainment complex featuring 3 hotels including a six star all-suite Maxims Hotel, an iconic shopping mall, 4 high end cinemas and a multipurpose performing arts theatre.
• The land-based casino operations bear watching as lower operating cost in the Philippines and lower gaming tax could see faster payback for the investments in RWM.
• In addition to a captive local gaming population, RWM will also be able to attract players from South Korea, coastal China and Taiwan.
Interim Financials
• 1H10 turnaround with profit of US$11.3m versus FY09 loss of US$28.3m and 1H09 loss of US$35.3m.
• Annualised EPS is 0.32 US cts which translate into a P/E of 137.5x which is typical of companies staging a turnaround.
• Historical BVPS is US$0.27 or a historical P/BV of 1.6x.
• No interim DPS declared.
Profit Momentum Returning
FY 08 - -101.1
1H FY09 - -35.3
2H FY09 - 7.0
1H FY10 - 11.3
Technical Analysis
• The stock broke out of its bullish flag pattern in July and has rallied about 123.6% of the previous run prior to the flag pattern. The stock should have more upside in the longer term, likely to test US$0.505, the 138.2%FR level.
• However, its RSI is showing a bearish divergence and already overbought, suggesting that a minor pullback is likely.
• Support is seen around the US$0.40 levels.
• If prices fall below US$0.37, it would mean that a deeper correction is taking place.
Saturday, September 18, 2010
NYSE news : Bank of America
RECOMMENDATION
We rate BANK OF AMERICA CORP (BAC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and disappointing return on equity.
HIGHLIGHTS
Net operating cash flow has increased to $15,475.00 million or 43.10% when compared to the same quarter last year. In addition, BANK OF AMERICA CORP has also vastly surpassed the industry average cash flow growth rate of -32.89%.
The gross profit margin for BANK OF AMERICA CORP is rather high; currently it is at 59.50%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.80% trails the industry average. BAC, with its decline in revenue, underperformed when compared the industry average of 0.4%. Since the same quarter one year prior, revenues fell by 13.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
The debt-to-equity ratio is very high at 3.73 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Diversified Financial Services industry and the overall market on the basis of return on equity, BANK OF AMERICA CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
We rate BANK OF AMERICA CORP (BAC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally poor debt management and disappointing return on equity.
HIGHLIGHTS
Net operating cash flow has increased to $15,475.00 million or 43.10% when compared to the same quarter last year. In addition, BANK OF AMERICA CORP has also vastly surpassed the industry average cash flow growth rate of -32.89%.
The gross profit margin for BANK OF AMERICA CORP is rather high; currently it is at 59.50%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 8.80% trails the industry average. BAC, with its decline in revenue, underperformed when compared the industry average of 0.4%. Since the same quarter one year prior, revenues fell by 13.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
The debt-to-equity ratio is very high at 3.73 and currently higher than the industry average, implying that there is very poor management of debt levels within the company.
The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Diversified Financial Services industry and the overall market on the basis of return on equity, BANK OF AMERICA CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
Thursday, September 16, 2010
Tuesday, September 14, 2010
Buffett dismisses double-dip fear, media reports say
SAN FRANCISCO (MarketWatch) -- Berkshire Hathaway Inc. Chairman Warren Buffett dismissed concern about a double-dip recession, while noting the businesses he oversees are recovering, according to media reports on Monday.
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http://www.marketwatch.com/story/buffett-dismisses-double-dip-fears-reports-say-2010-09-13
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http://www.marketwatch.com/story/buffett-dismisses-double-dip-fears-reports-say-2010-09-13
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