Investera i aktier

Capital Award (CA) will be listed before Tri-way. Solomon talked about a bunch of possible countries to list CA in but at the end he mentioned Stockholm with such a tonality that I interpreted it as the most likely place for listning.

There are 3-4 projects in the pipeline for Capital Award and it seemed very likely that an agreement would be completed this year regarding one of those projects and its financing. Solomon talked about India and Malaysia.

On a personal note I think that Capital Award will be a great source of value in the future. If Tri-way gets financing so that they can resume capex  (more about that in the next part about Tri-way) and thus continue buying services from CA and CA also gets other projects in other countries the future looks very bright. Especially if CA can be listed on a stock exchange as well and that the company might be able to secure more debt financing in the future.

SIAFs beef business is difficult because it is capital intensive. They are waiting for a government plan. Solomon does not want to do capex.

Solomon sees canned beef value added products as the future if the government can’t come up with a good plan. Solomon is sure canned beef is the future because there is still not a single big brand of canned beef in China.

They might have a solution with the government before the end of year.

Lots of countries have entered the beef market in China, around 12 countries. US entry of China beef market is extra troublesome for SIAF since the US has high quality meat and SIAF also have high quality meat, i.e. the US imports pushes down the prices that SIAF would receive – making SIAF take a hit again (before it was Australian lower quality meat that made them take a hit).

One problem with the cattle business is that it is difficult to make big changes since it is a capital intensive multi year process (especially when changing to higher quality beef like SIAF did last time). In the fish business it is easy to make quick changes.

General comment about land value, not only about beef business: It is complicated to realize book value from land, and cannot sell agricultural land.  Some land that they have built on also have mortgages.

P.S. The best parts of the meeting was about Tri-way and Capital Award. In the first two parts I cover the HU flowers and beef business and save the best bits for later.

ReadlDutchs mötessammanfattning från ett möte med Solomon kan ni läsa här. Jag tror det är uppgifter som RD fått från nån annan som varit på mötet. Jag vet inte säkert om det är samma möte som jag deltog i eftersom Solomon hållit några styck möten senaste tiden.

C-MF har på iHub sammanfattat gårdagens möte med Solomon.

Inledning.

Del ett.

Del två.

Jag kommer att publicera mina egna betraktelser från mötet i en serie bloggposter de kommande dagarna med start imorgon kl. 08.00.