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The listing status of CMZ will be maintained.
"With regard to the above, the Company has been informed by the Offeror that it intends to maintain the listing status of the Company and is evaluating various options to restore the free float of the Company. The Company will update Shareholders of any material development in due course."
Reference:
http://infopub.sgx.com/FileOpen/CMZ_Anno...eID=260359
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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Indofood won't care.
Anyway, the expense increase can be easily cut. Apart from the GPM drop, the bulk of profitability increase comes from higher A&P cost + legal fess (against Glaucus?). These are all likely to be one-off.
"Criticism is the fertilizer of learning." - Sir John Templeton
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Actual decrease in profits is actually 20% and not 80% if not for one time expenses of advertising and legal fees. Decrease in earnings is in line with the higher labour and raw material cost across industry. you can see a similar decrease for Yamada Green.
Valuation at 0.84 is assuming the worst. Without taking into account the growth due to expansion in facilities and the new synergy brought about in indofood. The stock is easily worth $1.10.
Granted that there might be fraud risk, however in my opinion it is minimal due to the following reasons
1) Temasek and PT indofood has done their due dilligence on CMZ
2) Lin Guo Rong has shown positive signalling over the years
3) CMZ openly invites analyst to their plants.
4) dividend was given out
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Apart from fundamental analysis, most of the current shareholders are those who held onto the stock believing that the it is worth more than PT indofood offer price. The recent sell down is probably due to low liquidity of the stock and this in turns causes panic amongst shareholders. Sentiments should picked up once a support is found which is around 0.82-0.85
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Interesting call for a half hour trading halt for market to "DIGEST the NEWS" today. Why would they need to do that? it seems after lifting of halt the stock has not much action anyways...