This is a short post.
I believed Golden Agri has fallen to a price where it might be a good idea to pay more attention to it.
This is because:
1) They are reviewing their China business model, which is really a drag on their otherwise stable (although cyclical) business. If they sold it off, it might provide a short term catalyst. It is reported in their presentation and also in the edge.
2) Finally, Capex is tapering off. I was wondering why are they so aggressive in capex when the market is cool.
Projected capex:
2009: 200 mio
2010: 400 mio
2011: 450 mio
2012: 500 mio
2013: 550 mio
2014: 550 mio
2015: 300 mio
Golden agri is behaving like a aggressive growth stock, but apparently, market is not giving it a growth stock valuation, it might be a better idea for it to increase dividends but improving ......