Wednesday, July 9, 2008

Analysis on GMG Global


Here's the technical analysis (TA) on GMG Global.

The upper band A'B' of the uptrend channel provided support at $0.195. This also coincided with the long white candlestick on 28/4. This is bullish as GMG had retraced less than 50% of its surge from $0.135 to $0.24. From there, it broke out of its Pennant Formation and began its next leg up. MACD is showing a golden crossover and RSI is displaying positive divergence. Resistance is set around $0.27 in proximity to the upper band C'D'.

2 comments:

Nostradamus said...

GMG Global (GMG) is a S'pore headquartered plantation group dedicated to long-term investments in Central and West Africa, as well as Indonesia. It is an integrated producer of natural rubber engaged in the planting, growing, tapping processing, marketing and exporting of natural rubber. Their emphasis is on producing premium products for Europe, US and Asia markets.

GMG's Hevecam plantation in Cameroon has an area of 40,000 ha with a processing capacity of 50,000 tonnes. Its Tropical Rubber Cote d'Ivoire plantation in Ivory Coast has 1,511 ha and processing capacity of 30,000 tonnes. Its Indonesian operation has a processing capacity of 30,000 tonnes. GMG has an annual production of above 50,000 tonnes per year and accounts for approximately 60% and 12% of Cameroon's and Ivory Coast's annual rubber exports respectively.

GMG intends to boost production volume in the short term via expansion in processing by opening new plants in Indonesia or Ivory Coast. In the longer term, the group intends to grow production volume by new land and new plantation acquisitions.

At $0.205, GMG is trading at 20.6x historical PER.

Nostradamus said...

Sinochem International (Overseas) Pte. Ltd. has made a voluntary conditional cash partial offer for 51% (1,030,508,519) of the shares of GMG at $0.26 each.

The Securities Industry Council has already approved the Partial Offer subject to conditions on 4 Jul.

The Offeror is a wholly-owned subsidiary of Sinochem Intl Corp ("SIL"). SIL is publicly listed on the Shanghai Stock Exchange, and comprises a diversified international group specialising in the trading, manufacturing and transportation of chemicals, plastics, rubbers and metallurgy products.