Tony, Peter:
Your questions are very appropriate and I am still seeking answers myself. Its hard to get data here. All I have are results from the year ending June, 97. They had 22% growth in earnings and profits year over year in their last report. It will be much less of course in their next report and likely will lose money. I viewed SIDBY as a good index stock for the region, due to their broad holdings and felt that, at today's valuations plus very favorable exchange rates, it warranted a play. I nearly bought it two weeks ago but was warned off by a friend who had come to some info about pending write offs in their bank. Last week they announced a 1.8 billion Rm write off due to bad loans. One of these accounted for 800 million alone. Clearly some very poor management. The stock was beaten down to 4.20 from 4.80 (Rm) before trading was halted on news that they would enter bank sale negotiations with RHB Bank Holdings.
IMO SIDBY could be an excellent vehicle for an indexed, or representative, investment in Asia. They have extensive holdings which include businesses in extractive industries (gas, oil, timber, mining, rock & marble quarries,) including drilling & exploration, timber processing, furniture manufacturing, and corrugated box manufacturing. Ag products including palm, rubber, and cocoa plantations and includes product processing, mfg. and distribution of latex products, edible and industrial oils, tires and farming research and development. Automotive products include automobile parts, batterys, auto distributorships (all over Asia), trucks & heavy equipment. Commercial lab services (calibration services), computer distribution, travel agencys, refrigeration, industrial HVAC systems, refrigeration systems mfg. & sales, nursery and landscaping, aircraft parts mfg. & sales, maritime engine sales, restaurants, hotels, property management, security systems mfg & sales, industrial waste management services, liquor & tobacco distribution, pharmaceutical sales, rice trading, hydraulic repair services, industrial and decorative paint sales, and a jv with Caterpillar for distribution in Australia,Malaysia, and new Guinea add to the list.
My first buy criteria will be the divestiture of their bank or a resumption of trading with a target buy of 2.50 (Rm) per share. This may change as I get further into the valuation but is a price based on a recommendation from an accounting friend. I would be happy to see them sell their stock brokerage as well. I will increase holdings in the stock when I begin to see the light at the end of the tunnel for the country and the region. This company will benefit greatly from any recovery in Asia, while maintaining some intersting export based business until that recovery occurs.
Best,
Stitch |
