SINGAPORE – 21 April 2011 – GMG Global Limited (“GMG” or “the Group”), Singapore’s listed integrated producer of natural rubber engaged in the planting, growing, tapping, processing, marketing and exporting of natural rubber; recorded outstanding growth for three months ended 31 March 2011 (“1Q11”).
The Group’s revenue increased 241.8% y-o-y to S$282.8 million from S$82.7 million in 1Q10. The strong growth was supported by a 59.5% increase in average selling price of rubber from S$3,902 per ton in 1Q10 to S$6,223 per ton in 1Q11.
Sgxstockpicker says: I believe that GMG's stock price should be lower because of the situation in the Ivory Coast. However, based on what I can see, GMG's stock is heavily supported by the "big boys". This stock is waiting for the next catalyst to go past 30 cents, and I believe that the catalyst will be greater earnings visibility for 2Q11 when, the impact of the closure of Ivory Coast's ports will be accounted for. GMG has said that almost 12% of revenue comes from that part of the world.