GMG Global

[kiasiDBT]

Today candle bullish engulfing marubozu

[winston]

Not vested in GMG Global

Fighting rages in Ivory Coast, 800 dead in west by Tim Cocks and Ange Aboa

ABIDJAN (Reuters) - Soldiers of Ivory Coast's rival leaders battled for the presidential palace, military bases and state TV in the main city Abidjan Saturday, in a conflict so brutal that 800 people have been killed in just one town.

Advancing soldiers backing Alassane Ouattara, who U.N.-certified results show won a November 28 presidential election, met stiff resistance from fighters remaining loyal to incumbent Laurent Gbagbo, who has refused to step down.

A Reuters reporter heard sporadic gunfire and explosions from heavy shelling near the presidential palace throughout the day, and clashes also raged around the office of state broadcaster RTI, back in Gbagbo's hands after the rebels had initially seized it, and some military bases in the city.

"There are a lot of deaths in both camps, but the most determined is the one who will win."

The International Committee of the Red Cross said at least 800 people were killed in intercommunal violence in the western Ivorian town of Duekoue this week.


Source: Reuters

[winston]

Not vested

Rubber producer GMG Global may be in focus after it said its plantation and processing facilities in the Ivory Coast will temporarily halt operations due to a country-wide curfew and disruption in transportation.


Source: Reuters

[winston]

Not vested

Forces of Ivory Coast's elected president Alassane Ouattara say they are storming residence of rival Laurent Gbagbo.

Source: CNN International

[winston]

Not vested

Singapore's GMG Global resumes Ivory Coast operations

SINGAPORE, April 27 (Reuters) - Singapore-listed rubber firm GMG Global said on Wednesday its subsidiary in Ivory Coast as resumed operations on April 26.

GMG Global said earlier this month its plantation and processing facilities in the Ivory Coast would halt operations temporarily due to a country-wide curfew and disruption in transportation after civil unrest erupted in the country. [ID:nL3E7F41CN]

GMG Global, which is 51-percent owned by China's state firm Sinochem International , expects its annual production to increase to 150,000 tonnes a year by 2012, up from 100,000 tonnes in 2010, the company said last year.

http://www.reuters.com/article/2011/04/ ... 3020110427

[kiasiDBT]

Very profitable year for GMG

GMG Global Limited (GMG SP, $0.23, NOT RATED) – GMG is an integrated natural rubber company with plantations in Africa and processing operations globally. It stands to benefit from higher natural rubber prices, which have resumed their upward trend since the Japanese disaster in March.

If prices continue at this level, 2011 could turn out to be a very profitable year for GMG, a seeming disconnect with its share price which has remained flat.

[winston]

Not vested

Singapore Hot Stocks-GMG Global up on report highlighting merits

SINGAPORE, July 12 (Reuters) - Shares of Singapore-listed rubber firm GMG Global surged as much as 7.8 percent on Tuesday to a seven-week high after a local newspaper highlighted that the firm is expected to benefit from rising demand from China, traders said.

At 0152 GMT, shares of GMG were 5.9 percent higher at S$0.27 with over 34.6 million shares changing hands. This was more than double its average daily volume in the last five days.

GMG Global is the largest supplier of natural rubber to China, which consumes a third of the world's supply of the commodity, the Business Times said in a column on Tuesday.

It also highlighted that GMG Global was one of the world's few listed rubber firms with a presence in plantation, processing and distribution.

"The stock is likely reacting to the column in the Business Times, which highlighted some of the investment merits of the firm that investors may have overlooked. Its share price has been relatively weak so far this year so it could have some catching up to do," said a local trader.

GMG Global's shares have fallen 10.2 percent since the start of the year.

Source: Reuters

[ichew]

the said article tat pushed GMG up 7.8%

Published July 12, 2011

Rubber play GMG may be just the kind of S-chip SGX needs
By VEN SREENIVASAN


THE largest supplier of natural rubber to a country which consumes a third of the global supply. A strong balance sheet to support upstream and downstream capacity expansion as rubber prices continue to surge.


Surely a winning proposition for any company?

Yet, GMG Global's stock price has been stagnating as market players remain fixated on situational punts.

Listed in 1999, GMG is the only pure natural rubber play on the Singapore Exchange (SGX). It has some 43,000 hectares of rubber plantation land in the African countries of Cameroon and Cote d'Ivoire (Ivory Coast), only half of which are now under cultivation. It has also bought into two processing plants in Kalimantan, Indonesia, with a total capacity of 55,000 tonnes. Last year, it acquired a controlling stake in Thai rubber processing company Teck Bee Hang.

Its Ivory Coast operations - which account for 20 per cent of GMG's gross profit - are back onstream after a month-long suspension during the political turmoil in that country.

GMG is one of the world's only few listed rubber plays which has a presence in plantation, processing and distribution. But more critically, the company is the single largest supplier of natural rubber to China.

It is 51 per cent owned by Beijing-headquartered Sinochem, one of China's Tier-1 state-owned enterprises (SOEs). Sinochem bought into GMG for $265 million, at an average of 26.5 cents per share, in 2008. A year later, it picked up its share of a $100 million rights issue, taking its average price in GMG down to 17 cents per share. Sinochem officials have said that the SOE could raise its stake in GMG to around 60-70 per cent over time.

Sinochem is also the biggest rubber trader in China - supplying over 15 per cent of the needs of a country which consumes a third of the world's rubber production.

Secure distribution

The Sinochem parentage gives GMG secure distribution into one of the most dynamic rubber markets in the world, significantly reducing its exposure to third-party clients elsewhere.

The global rubber sector has been facing a tightening supply-demand squeeze over the past year due to a combination of underinvestment in plantations and processing, and rising demand for the commodity from China, India and the rest of the world. Natural rubber is used in everything from car parts to home appliances and medical-scientific equipment.

China's demand for this commodity has grown at an average of 10 per cent annually. The only domestic rubber supply is some 500,000 tonnes from Hainan, in southern China. According to Sinochem officials, China considers rubber to be a more critical strategic asset than oil.

The Association of Natural Rubber Producing Countries estimates that natural rubber consumption in China would rise 9 per cent to 3.6 million tonnes this year, while in India, it is on target to grow 5.2 per cent to 991,000 tonnes. Not surprisingly, rubber futures have gained 20 per cent so far this year, extending last year's 50 per cent rally.

Analysts expect the rubber price rally to last well into 2012 and beyond.

In a report last week, DBS Vickers noted that robust demand and slow supply response could shift the natural rubber stock-usage ratio lower over the next 10 years.

'On average, we expect NR (natural rubber) prices to remain above US$3,500/tonne over this period - significantly higher compared to previous decade's average of US$1,597/tonne,' it said. 'We believe GMG is a key beneficiary of strong rubber prices, given its significant upstream contribution and growing processing volumes.'

BOA Merrill Lynch seems even more bullish.

'The (company's) upstream earnings, in our view, deserve a peak multiple (full production cycle) given a robust rubber price cycle,' it noted last week, pasting a 46-cent price target on the stock. 'The target multiple reflects our optimistic view of the rubber price extending its rally (our 2011E price is US$5,500/tonne) as well as GMG's imminent upstream expansion.'

The growing demand and rising price boosted GMG's net profit for the full year to end-December 2010 more than ninefold to $45 million.

Armed with some $130 million in cash, no debt and controlled by a Tier-1 SOE from the world's biggest consumer, GMG remains well positioned to consolidate its already dominant position in the natural rubber market.

If it executes its plans, GMG could be just the kind of 'S-chip' which the local bourse sorely needs.

[winston]

Food for thought:-

1) Was it the article that pushed the stock ? Or
2) Did THEY use the article to push the stock ?
3) Did the writer declare that he's not vested ?
4) Did the writer declare that he does not have any business relationship with anyone who has a vested interest ?
5) Does MAS investigate such articles ?

[ichew]

prob a combination of (1) & (2)
but this is not the 1st time a Hock Lock Siew BT article blew a stock up
happened many times in the past few yrs
in a bull mkt, look out for DBSV "Strong Buy" reports too

the key is to get these articles / reports b4 mkt open and exit fast
the art is to know when to buy cos sometimes no amt of smoke can push the price up (eg berlianLaju) OR not much meat to chase liao (strong buy reports' tgt price vs current px)

and lastly nope, i dont tink MAS is investigating
and i also dunno if author has any vested interest etc
BUT i have always noted this author Ven & this column in BT