Posted by CT > 2022-05-08 22:50 | Report Abuse

I don't buy Subur, but what I know is most of the Company's borrowing are revolving credit, banker acceptance (around 90%) which can be rolled over the year. Unless the bank request to pay back the money immediately, I don' think any right issue or private placement in short term. Another way is they can restructure their short term debts to long term debts like Jaya Tiasa last year.

Posted by kmohan62 > 2022-05-09 10:20 | Report Abuse

I couldn't agree more with the opinion of the writer...I too have analysed Subur's financial statements a couple of times and not comfortable with their debt level especially their current liabilities...there's certainly a gross mismatch between its share price and debt obligation...very ominous indeed!

Posted by dragon328 > 2022-05-09 10:29 | Report Abuse

KC, good analysis and well written!
Agree with you that while there are so many other undervalued stocks with much stronger balance sheets and assets, why bother to look at Subur that may go into bankruptcy if palm oil prices drop back to pre-pandemic levels?

Posted by skoh888 > 2022-05-09 12:51 | Report Abuse

great article KC. balanced, objective and honest!

Posted by kcchongnz > 2022-05-09 13:08 | Report Abuse

CT

I don't buy Subur, but what I know is most of the Company's borrowing are revolving credit, banker acceptance (around 90%) which can be rolled over the year. Unless the bank request to pay back the money immediately, I don' think any right issue or private placement in short term. Another way is they can restructure their short term debts to long term debts like Jaya Tiasa last year.

Thanks CT for your comments. You are right. The short-term loans for Subur is from the revolving credit which the company can keep on using as long as it is below the approved limit. With palm oil prices at elevated level, Subur should have the cash to replenish the RC.
However, a loan is still a loan and need to pay back. If palm oil price continues to be good, no problem. The problem will come if palm oil price goes down and the company does not earn enough to pay interest for the loan. Also if there is a financial crisis or economic crisis and the banks insist Subur to pay back the loans.

Posted by kcchongnz > 2022-05-09 13:11 | Report Abuse

Also a loan is a loan. The total amount of loans taken is huge and affecting the liquidity and solvency risks. That is also why the adverse unmodified statement by the external auditor was given.

Posted by kcchongnz > 2022-05-10 15:24 | Report Abuse

Posted by qqq3333 > 1 day ago | Report Abuse

want some pocket money, buy some serba at current price. at less than 15

wondering how much money by now you have made gambling.

Posted by kcchongnz > 2022-05-10 19:43 | Report Abuse

Posted by qqq3333 > 1 hour ago | Report Abuse
Want some pocket money? Buy some Serba. Yesterday just 1 day too early

In just 2 days, your recommendation to punt Serba resulted a loss of a whopping 50%! Oh my God!
You never learn.
Here is a free advice again. Treat buying a stock as investing in a business. Then your fortune may change.

Posted by kcchongnz > 2022-05-11 07:27 | Report Abuse

qqq3333
2 days down , but 2weeks later make money. very easy, buy more at 7 sen.

But what did you say a day ago as below?


qqq3333

want some pocket money, buy some serba at current price. at less than 15

1 day ago

Posted by kcchongnz > 2022-05-11 07:29 | Report Abuse

qqq3333
who are selling hundreds of millions of serba shares? these are losers............always good to buy from born losers....including kcChong

So who actually is a born loser?



qqq3333

want some pocket money, buy some serba at current price. at less than 15

1 day ago

Posted by gohkimhock > 2022-05-15 14:12 | Report Abuse

@qqq3333 you are an experienced trader. You know very well that nobody can time the market. Will you still buy Serbadk at 12 sen now? I won't.