SBI - Sterling Plantations

[moneymajix]

25c


http://www.sterlingbiofuels.com/


Through its wholly owned Malaysian subsidiary, SPC Biodiesel Sdn Bhd, Sterling Biofuels has constructed a 100,000 tonne per year Biodiesel plant in Lahad Datu in the Malaysian state of Sabah which is ready to commence production.

 

[purple]

Re: SBI - Stirling Biofuels Interntional

I nearly regurgitated my peanut butter sandwiches on this nice Sat morning when I had a look at the chart.

Anyone done any research into this one? Any good fundamentals for the sp to pick up?

 

[moneymajix]

Re: SBI - Stirling Biofuels Interntional

Purple

Nice to get a reply re this new thread.


Was there something wrong with the peanut butter?

 

[moneymajix]

Re: SBI - Stirling Biofuels Interntional

On a lighter note, I guess the question is whether this is undervalued.

I think there were some problems that may have been resolved.

I read somewhere they have $13m in cash.

 

[purple]

Re: SBI - Stirling Biofuels Interntional

The peanut butter was creamy and thick as usual....nice.

Just have not done any research into this company, couldn't comment much on it..but on the surface, it sounds interesting, with its biofuel.

Malaysia has given other ASX companies operating on their shores a tax free period of 10 years (LYC), so I wonder if SBI have got the same.

 

[ideaforlife]

Re: SBI - Stirling Biofuels Interntional

A thread on SBI finally. The tricky part about this one is the increasing price on palm oil - the raw material and stagnant product price (biodiesel sale price in EU has not increased so far). There is no sign that palm oil price will drop in the near future - considering the demand from China and biodiesel production. The new plantation around the world has reached harvest season yet. Although SBI has tempted to resort to other feedstocks (in its latest ann) - most likely Jatropha oil but the availability with Jatropha oil is still in doubt.

I do belive SBI is undervalued, but I would be very cautious and wait until there is a very strong entry sign.

 

[moneymajix]

Re: SBI - Stirling Biofuels Interntional

IdealforLife

You seem to be the resident expert.

Great to hear from you.

There seems to be an inkling that this stock is undervalued.

Your input, I am sure, will be valuable in times ahead.


Thanks.


By the way, this link re jatropha was posted on this forum recently.

Weed moves from bowels to biofuel

http://www.theaustralian.news.com.au/story/0,25197,22154110-30417,00.html


PS: As a relative newbie, is there a policy (official or unofficial) re starting new stock threads on ASF?

 

[BIG BWACULL]

Re: SBI - Stirling Biofuels Interntional

I Posted this on the Natural fuels thread and maybe i should start a Mission Biofuels Thread

There probably is light somewhere there in the the abyss but its a long way to crawl, If your serious about investing in Biofuels Look at Mission Biofuels (MBT) And Sterling Biofuels (SBI). Mission biofuels of the lot by far have the best fundamentals and shares appear to be tightly held. SBI have just finished building their plant and will commence commisioning, Both are subject to fluctuating palm oil prices, Both have tax exemption cause their in malaysia, Both are close to feedstock but mission biofuels has a longterm outlook switching feedstocks to jatropa (an inedible feedstock that will not be affected by external palm oil feedstock prices or any other feedstock price) Oh yeah please DYOR

 

[moneymajix]

Re: SBI - Stirling Biofuels Interntional

BIG B

I think I like SBI better than Mission.

More of a gut feeling than anything.

DYOR.


PS: IS there a reluctance to start new threads on ASF? If so, why?

 

[ideaforlife]

Re: SBI - Stirling Biofuels Interntional

Cheers, Money. I'm new to stock trading but have been following biofuel industry for a while.

I guess the market for biodiesel is still there but the bottleneck of hiking feedstock price remains. SBI has contract selling BD to EU at market price. Unless the BD price goes up or SBI successfuly secure a cheaper feedstock then it's hard to imagine its situation changes. One biofuel company in UK has already been liquidated due to unsuccessful risk control. After all it's an emerging industry therefore still in try n error stage.

In terms of MBT and SBI, I don't know much about MBT, but I know that SBI is in responsible hands but just unlucky in this market situation. They have been responsibly postponed the production to protec the shareholders' interest which certainly led to a SP from 50c to 30c. 3 circumstances will bring SBI back to life:

a. Palm oil price drops - impossible;
b. EU increases BD purchasing price. EU currently subsidy its BD plants as majority of plants use veg oil of which price is already higher than BD price. So it's also bit unlikely for the time being;
c. Find a much cheaper feedstock - most likely.

But it seems Money, you are very good at picking undervalued stock and waiting patiently for its appreciation. Sure I believe SBI is in good hands but we need to wait for the entry sign or the risk is still there.

 

[moneymajix]

Re: SBI - Stirling Biofuels Interntional

IdeafLife

Thanks for the information.

I find that there is some good info on ASF esp. if people are not shy about contributing their knowledge.

And thanks for the compliment. I think I am getting better at the picks and as a result I am waiting a bit less.

LOL.

 

[purple]

Re: SBI - Stirling Biofuels Interntional

I Posted this on the Natural fuels thread and maybe i should start a Mission Biofuels Thread

where's the Natural Fuels thread? i can't find it.

can you post a link to it? that would be good.

 

[king.jackson]

Re: SBI - Stirling Biofuels International

Im definately holding onto this. After spotting it fall so rapidly I decided to buy. Once production starts and they have sorted alternative oil stocks I think this company will be getting lots of attention. Will easily swing back to where it was at the 50cents plus marks.

 

[BIG BWACULL]

Re: SBI - Stirling Biofuels Interntional

where's the Natural Fuels thread? i can't find it.

can you post a link to it? that would be good.

You Probly found it by now Sorry

https://www.aussiestockforums.com/forums/showthread.php?t=5168&highlight=nfl

 

[moneymajix]

Re: SBI - Stirling Biofuels International

The Australian today, in Robin Bromby's Pure Speculation

WE'VE shown an interest before in non-mineral commodities that look like being in short supply. Well, now there's a second (after the Overseas & General case we mentioned a few weeks back) chance to get exposure to palm oil. Sterling Biofuels International, which is building a biodiesel plant in Malaysia, is moving upstream in the process by gaining control of a Malaysian company with 4290ha of land earmarked for an oil palm plantation.

 

[springhill]

Re: SBI - Stirling Biofuels International

MC - $6m
SP - 10c
Shares - 60m
Options - ?
Cash - $20m

Directors
Dato’ CRS Paragash
Andrew Phang
Jackie Leong
Paul Mason
Graham Keys

Principal Activities
The Group is principally involved in oil palm plantation development and the marketing and sale of grower plots under the Growers Scheme(s). It is also involved in the manufacture of biodiesel from palm oil.

Types of products and services
Biodiesel
The biodiesel business is a producer and supplier of blended biodiesel for export markets. The biodiesel business has been determined as both an operating segment and reportable segment.
Oil palm
Oil palm business is a producer and supplier of fresh fruit bunches (FFB) for palm oil industrial markets. The oil palm business has been determined as both an operating segment and reportable segment.

Review and Results of Operations
The consolidated loss after income tax for the half-year ended 31 December 2011 was $5,521,958 (halfyear
ended 31 December 2010: loss of $3,063,918).
The loss includes higher expenditure incurred for the plantation development, and growers scheme marketing costs and yield payments relating to the Growers Scheme. Marketing costs and yield payments are paid out of growers fees received under the Growers Scheme. While marketing costs and yield payments are reflected as expenses in the Statement of Comprehensive Income, growers fees are required to be shown as a liability in the Statement of Financial Position in accordance with current accounting standards.
Funds received under the Growers Scheme have exceeded expectations resulting in a build up of cash
of $3,697,955.
The biodiesel industry continues to be in the doldrums with no improvement in production economics over the last period and no clear indication of when we will see positive margins to allow for production.

Going concern
During the half-year ended 31 December 2011, the consolidated entity incurred net losses of $5.522. million (2010: $3.064 million) and a net cash outflow from operations of $5.678 million (2010: $2.003 million).
However, the cash inflows under the growers scheme of $16.984 million (2010: $4.775 million) more than compensates for the net cash outflow from operations.

Successful launch of Growers Scheme
The Growers Scheme was launched on 20 August 2010. The Scheme involves the offer of 30,800 grower plots to the Malaysian public. During the term of the Scheme, investors participate in the net yield of the plantation to the extent of their participating interest. As more fully described in note 8, the Scheme also provides for guaranteed yield payments and termination payments. As at 8 February 2012, $34.511 million has been raised and the Scheme is ultimately expected to raise gross funds of $80 million. The Group will continue to retain at least 30% of the economic value of the plantation development.