Golden Agri as a stock or company presents a very interesting study. I was prompted by a post I saw on Golden Agri by another blogger. (read here)
It is at the mercy of Palm Oil price fluctuation despite increasing productivity. In addition, the Indonesian government will likely follow and adjust its crude palm oil (CPO) export tax policy which may adversely affect sales of Palm Oil from the country. Macro economics aside, let’s study the fundamentals of the company internally. Currently profit has fallen and debt rates are increasing, the trend has not been moving in a positive trend. However, free cash flow is improving. Hope that will slowly translate to improvement in profit margins and lower debt rates. Internally, the management appears to be taking opportunity of the ‘low’ stock price to buy back shares. The price to book ratio has been decreasing which again seems to point to ......