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(22-02-2015, 08:49 PM)Curiousparty Wrote: The biggest problem with Kencana now is its declining cash holding, which will slow down its pace of planting (for the future).
Hence, it will have an impact on its future yield and hence profit.
Would Kencana do a rights issue to boost its cashflow position?
Future profit also contingent upon whether there is capacity to produce. The plantations under Kencana are relatively young and there is more revenue upside potential once they achieve the optimal productivity rates of mature palm trees. Doubt financials will be earth shaking for the near term. Broker also advised me that this is a long term play.
Cash holding, I'm not too worried. They have been losing money for a while, so why lose sleep at this moment?
Placement also seems possible. They could do a bond issue. Prices are significantly lower than what Wilmar paid earlier on. At 20 +- cents, its a still good price to enter.
Moi vested, but small position.
PS: CP, vested in Kencana?
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.