Wilmar: Doing deals with what?

In Commodities, Financial competency on 29/08/2012 at 6:26 am

(Or “Why analysts are talking rubbish” or “Bond issue coming up”)

Analysts are telling Wilmar to do deals to get its share price up. Remember they have been fans of Wilmar and need the share price to recover to look gd.

This Kuok wants to do deals. Its in his blood.

But the analysts forget one thing. How is Wilmar going to finance its deals. Not thru a share issue: because as they are pointing out the shares are “super cheap”. Borrowing more money ain’t that easy because co has net debt of US$12.5bn on a market captalisation of US$19bn. True got gd cash flow and interest cover. But it would need brave bankers. Not many around nowadays as the irrational French frogs are nursing losses.

Err what a bond issue aimed at the retail investor? Why not call DBS? Reason:


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: