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15-08-2012, 11:57 PM
(This post was last modified: 15-08-2012, 11:58 PM by mrEngineer.)
One thing I must say for resource companies is to really know what kind of assets (especially land) they have. A real smart entreprise have access to significant pieces of valuable land and use them at the right time (when the villagers have vacated the land for 5 years at least and no one know why it was purchased in the first place - they typically use BOT schemes or agent companies to do it without showing who is the real owner).
Another topic is debt. Sometimes I ask myself whether debt really an issue for extremely well-connected big companies. Olam is much more leveraged than Wilmar. However, as they are supported by our large soverign funds and have significant strategic interest our country, would they ever allow Olam to default? Somehow, in times of crisis, these companies will be able to survive by some form refinancing or arrangement.
Another topic is debt. Sometimes I ask myself whether debt really an issue for extremely well-connected big companies. Olam is much more leveraged than Wilmar. However, as they are supported by our large soverign funds and have significant strategic interest our country, would they ever allow Olam to default? Somehow, in times of crisis, these companies will be able to survive by some form refinancing or arrangement.