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22-05-2015, 05:35 PM
Anyone looking into cwt?
https://sg.finance.yahoo.com/news/hefty-...00359.html
The analyst outlook is that revenue growth may be subdued by the lower naptha trading volumes. What I find quite puzzling is that the company has various commodities of trade and not just naptha. To what extent does lower naptha trading volumes affect revenue growth? There is also the metals trading business. I am quite skeptical that just the lower naptha trading volume would bring down the revenues, considering that there is a diversified range of commodities being traded by the company.
Loi Pok Yen (in a Forbes article) was saying that cwt went into metals trading. CWT could then purchase the concentrates from the mines and mix it in the required proportions and resell to smelters. I am quite skeptical about the margins. Is it in any way attractive?
This then means that the company hold inventory and face some degree of price risk. eg, inventory on hand bought at prices to high or commodity prices dip due to whatever environmental factors. From note 14 of the annual report, it says that inventory is valued based on lower of cost or net realisable value and there are those others at fair value. There is possible real risk of inventory being written down due to periods of low commodity prices.
Any views from fellow VB regarding this?
https://sg.finance.yahoo.com/news/hefty-...00359.html
The analyst outlook is that revenue growth may be subdued by the lower naptha trading volumes. What I find quite puzzling is that the company has various commodities of trade and not just naptha. To what extent does lower naptha trading volumes affect revenue growth? There is also the metals trading business. I am quite skeptical that just the lower naptha trading volume would bring down the revenues, considering that there is a diversified range of commodities being traded by the company.
Loi Pok Yen (in a Forbes article) was saying that cwt went into metals trading. CWT could then purchase the concentrates from the mines and mix it in the required proportions and resell to smelters. I am quite skeptical about the margins. Is it in any way attractive?
This then means that the company hold inventory and face some degree of price risk. eg, inventory on hand bought at prices to high or commodity prices dip due to whatever environmental factors. From note 14 of the annual report, it says that inventory is valued based on lower of cost or net realisable value and there are those others at fair value. There is possible real risk of inventory being written down due to periods of low commodity prices.
Any views from fellow VB regarding this?
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.