Even i have been avoiding commodity stocks most of my life; because have been hurt badly in past. But i feel if you have done your homework well they reward you handsomely.
I have not invested yet in any sugar stock. But price action seem to be showing right signals. Frankly scared and don’t have any idea of sugar companies there capacities, location advantage, etc.
the primary reason for the sugar price rise in global markets the deficit forecast by global majors for the crushing season 2015-16 as against surplus of 2014-15. Leading global research firms like Kinsman has forecast global sugar deficit of 3.2 million tonnes in the current crushing season as compared to 3.4 million tonnes of surplus last year.
With downward revision in sugar output in India at 27 million tonnes for 2015-16 season, 2% decline from the previous year, production surpasses consumption by 3.5 million tonnes.
I buy when things are low and no one wants them. I keep them until they go up, and people are crazy to get them.
Hetty Green
can somebody explain why is the profit of the shipping companies increasing even though the sales are same . same pattern was seen in shreyas shipping. what different is happening nowadays.
5 reasons the bull run in sugar is not over
Today’s delivery %age looks awkwardly low.
Strangely, FY15 AR has neither reached my mailbox nor is on BSE; AGM was supposed to be in Sept end.
Also dividend hasn’t been credited.
Anyone got the AR or the dividend?
Disclosure- Minor Holding; looking to study more
Couple of links from Capitalmind highlighting potential issues for Yarn Industry.
1)The Trans-Pacific-Partnership-The US, Canada, Japan and 9 other countries are getting their free trade act together.
2)30% crash in Yarn prices since last year
two-danger-signs-for-the-yarn-industry-which-will-impact-our-exports-big-time
Excellent work on the inventory data. If the international prices firm up the debt level of Balrampur , dhampur , dalmia , dwarikesh will come down well. ( in the balrampur conf call they said its possible to export the excess inventory with govt help. Modi govt has promised help in clearing the excess inventory through exports. It has been done before .)
These 4 companies have two more similarities.
• The ‘cash profits’ they make even while posting net losses should be looked at. For eg Dwarikesh posted 20 cr cash profit both in 2013 and 2015. This cash profit is probably due to the high depreciation amount they carry on the books.
• They have paid dividends in the good times(05-06). Balrampur and dwarikesh with high payouts.
Kunal
Just look at the balance sheet post acquisition. Debt, working capital and cash positions have improved in the last 4 years.
btw just got an update that they have launched a new website: www.oblcorp.com.