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Strategies & Market Trends : Asia Forum - Investment Ideas -- Ignore unavailable to you. Want to Upgrade?

To: Tony van Werkhooven who wrote (7)	3/8/1998 11:43:00 PM
From: Stitch	Read Replies (1) \| Respond to of 23

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

To: Tony van Werkhooven who wrote (7)	3/9/1998 1:21:00 AM
From: Stitch	Respond to of 23

Tony, Peter; When I was typing out my last post I guess I should have been reading instead. (Like talking instead of listening.) My practice is to read the newspaper at lunchtime. I office in my home and the housekeeper who prepares my lunch when I'm home usually puts the paper next to my place when she calls me to eat. Today, minutes after finishing my post to you, I found that the headlines in the business section are all about SIDBY. The following is a summary. Note: All figures in Ringiit @ approx 3.94 to the dollar today. Sime Darby Bhd., even without accounting for losses in their bank operation, reported a group pretax loss for the first time in recent history. Overall loss for the six month period ending Dec 31, 97 was 1.11 billion as compared to a profit of 850 milion during the same period last year. Gross revenue rose 24% however to 7.89 billion from 6.38 billion previously. The company said the loss was mainly attributable to the pre tax loss of 1.81 billion suffered by Sime Bank Bhd. and its Sime Securities Bhd., which the holding company owns 60.35 % of. Other losses were sustained by insurance and leasing business held by the company. The group recorded a net loss of 676.2 million compared to a net profit of 463.2 million in the same period last year. This amounts to a loss of 29.1 sens per share versus earnings of 19.9 sens per share in the corresponding period last year. If the bank operation is excluded then Sime earnings would have increased 6% to 17.8 sen from 16.8 sen previously. The company further announced that profits in the second half would likely be lower then the first half owing to the economic slump in Asia. Various reported subsidiary earnings were reported as follows: Plantations - 107.3 million vs. 74.3 million (previosly) Sime Darby Hong Kong - 137.9 " vs. 74.4 " " Tire Mfg. - 23.0 " vs. 19.3 " " Sime Darby Singapore - 43.0 " vs. 49.5 " " Sime DarbyAustralia - 64.5 " (no figures but was a decline) DMIB Bhd. - 19.3 " vs. 17.6 " " Sime UEP (properties) - 97.2 " vs. 98.9 " " Tractors Malaysia Hldng*- 56.7 " vs. 54.3 " " In additional news Sime Darby has requested an extension to the trading suspension pending the outcome of the discussions with Rashid Hussain Bhd. regarding the sale of the bank. Negotiations are expected to be completed by the end of this week. The company has announced that it would likely remain in the red over the next six months as the losses associated with the bank were to great to be covered by profits from other businesses of the holding company. Hope all this helps. It has helped me for sure. My strategy remains intact. best, Stitch