Shares & Derivatives
Initiation Report on Sarine Technologies
By Heartland Boy  •  April 14, 2016

Business Model of Sarine

Sarine is a technology-based company incorporated in 1988 and headquartered in Israel. It is a worldwide leader in the development and manufacturing of advanced evaluation, planning, cutting, polishing and grading systems for diamonds and gemstones production. Sarine used to be an investor’s darling but has since fallen from grace. It is an unloved stock these days with low liquidity. However, Heartland Boy thinks that there is potential for a turn-around soon. To rationalize Heartland Boy’s investment thesis, it is better to first understand the value chain of the diamond industry.  

Diagram 1: Value chain of the diamond industry

Source: World Diamond Council

De Beers has a monopoly over the mining and production of rough diamonds. Therefore, it has the ability to control and influence the prices of rough diamonds which are sold to manufacturers. These manufacturers, which mainly reside in India, will sort, plan and cut ...

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By Heartland Boy
Heartland Boy is a young working adult who pretends to be competent in the real estate industry despite graduating with only a Business Management degree. Outside of work, he analyses stocks, reits and property for investment to build passive income. He is also a stickler for all things that represent value-for-money.
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