Yes, definitely, as Wilmar's EPS is much better than PPB. However, PE ratio alone cannot tell the full-story. One gotta look from the company's cash flow perspective coupled with its financial position (aka Balance sheet) too.

As an investor, we would want to know how much money can be taken out from the business and the business still runs and sustains. Thus, free cash flow is another important yardstick.

Anyway, I understand that it is just different perspective that we are looking at.

Most are earning-geared (# such as revenue, income, etc.) but I look more from the financial capability of the company if it can withstand shocks from the economy. Well, then again, I am a conservative investor myself I would rather try not to lose my money and invest in businesses which has sufficient margin of safety so that if I were to sleep every night, I sleep in peace.

Just my personal opinion =)

Yes. But i am not so agree on the "sleep at night" part. I believe even though Wilmar has higher gearing however i believe it will not end up lose money as you said. Its a big exagerate.

But of course i agree it will be better if Wilmar will able to lower down its gearing. Until then it will not worth SGD 3.37 anymore.


No stocks is perfect anyway.

Put it that way, low gearing means higher growth to me as it will enable PPB to expand its businesses.

Precisely, as you said darkknight81, no stocks is perfect. As shared by Warren Buffet:



That being said, thus, never discount out the possibility of inability to generate sufficient revenue to cover on the borrowings it is bearing at the moment.

Regardless, thanks for your insights.

PLANTED AREA UPDATE

Thanks a lot to you for highlighting this. Especially with those details calculations...


But don't forget when i bought Wilmar that time it was around SGD 3.10 and PPB at that time is around RM 14.XX.


For you i think you will also choose Wilmar le...

This post has been edited by darkknight81: May 29 2013, 08:22 PM

The increase in debt in 2010 was partly contributed by aggressive expansion plan during that year. E.g

Acquisition for sucrogen which has started to contribute now.

This post has been edited by darkknight81: Jun 1 2013, 10:16 AM

darkknight. Do you feel that what happened for this past few days is only a minor correction?

Partly due to sgd strengthen against myr. Last week i bought wilmar at SGD 2.40 and yesterday sgd vs myr is 2.45.

To be frank i don know how low it will go. But always keep some bullets.

Fyi the company bought back a lot of shares during sgd 3.00.

To me plantation go gor sgx, banking and retail go for hkx.

This post has been edited by darkknight81: Jun 1 2013, 10:14 AM

Thanks for your contribution .

Wow , first time I see a company keeps its stocks at us $6.7 B, almost half of shareholders fund.

I guess the palm oil market is rather sluggish with such a high stock level

This should be their inventories under oil seeds segment.

They purchased soil bean in USD.

Inventory has a price and cost .

When commodity prices rise or fall, big impact is always there.

And Bear in mind, interest cost on loans borrowed is on the Up trend.

This post has been edited by SKY 1809: Jun 1 2013, 12:06 PM

Yes. You are right. They already paid for it. Thats y u see the share price drop
From sgd 6.xx

Anyway, thanks for all your updates.

BTW , Robert Kuok used to a good Sugar speculator /trading.

Hope his second and 3 generations are as good as him.

I think the second generation would. Not too sure about the third generation. And i dun care about the third generation also

Agree. It was my concern however i don think i have the chance to see it

This post has been edited by darkknight81: Jun 1 2013, 08:09 PM

Normally they would involve their children in the management like purchasing & commodities .

Means they could be invisible at Director levels but learning or contributing something to the Group.

Don"t u hear of succession plans for big companies

Currently wilmar are being helm by robert kuok nephew kuok khoon hong.

Besides, the other reason i choose wilmar is i don really like a company which was fully controlled by a family.

ADM is the second largest shareholder with 16% stakes.

I read that the high gearing is the reason why people are a little scared. Is it true?

It is pretty strange that despite the financial results last quarter, this stock is not moving at all. People do not seem to have confidence in this stock for some reason. The price drop dramatically once there is a correction. Normally, I try to look at a stock long term. But it is difficult in this kind of environment.

If you compare wilmar gearing with olam it is nothing. Olam debt to rquity ratio is 2.53!!!

The main concern is the oil seed segment which i have keep on emphasizing. To be frank i don like this segment

Few major issues e.g. Overcapacity, low crushing margin, their crushing plants in china only operates 50% of their full
Capacity due to overcapacity...

Increase in soybean price which hurts their margin.

If your refer to this topic summary at first pagr you will realize oil segment
Used to contribute 30% to the group profit.

However, its contribution to the group was only 1% last year. Thats shows how volatile
Is for oil seed segment.

However, my understanding is china government has started to step in to control
Additional build up of crushing plants.soy bean price is going for correction soon.
China crusher has reduce their import for soynbean recently.

Pls refer to soybean price below.

http://www.indexmundi.com/commodities/?com...eans&months=240

This post has been edited by darkknight81: Jun 1 2013, 10:26 PM