GMG Global

UOB Kay Hian-

Summarised in points:

  • Demand for commodities set to quadruple over coming decade to feed growing economies like China and India
  • Regional palm oil plays like Indofood Agri, Wilmar and Golden Agri have been running up due to bullish reports
  • GMG Global is the only pure natural rubber play listed in Singapore
  • Supplier of processed rubber and latex to world's big tyre makers like Goodyear and Bridgestone
  • Owns 40000ha of landbank in Africa
  • Total rubber output of 70000 metric tonnes
  • 51% owned by Sinochem International Corp, a Chinese state-owned enterprise, largest rubber player in China
  • Rubber consumption in China projected to grow around 10% over coming decade
  • GMG sitting on a cash pile of $170 million following a share placement last year
  • Little gearing, $41 million profit in FY2008 and $22 million profit in FY2007
  • NTA 11 cents

This stock has been heavily traded in the past week, showing that there is market interest. I will monitor and wait for buy signals.

Dow Jones

The closing on Jan 13 is at the day high of the cycle high of the uptrend channel. A closing above that, which is 10682 is the signal for further upside. I rather miss this wave of run up and wait for the correction as the current prices are high. The index has been trending for the past week, and there is probably a lot of BB waiting to unload and initiate short positions. Patience for now. 10582 is the immediate support.

Dow correction imminient

A warm new year to my readers. I am a bit short on time to put up the chart, but a correction is imminient on dow jones and the STI index. I am staying out of long positions for the time being.