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treit2002

10/07/12 5:36 PM

#20120 RE: Petrejus #20117

Petrejus,

I hope you are right.

But I'd add a few cautionary notes to Mr. Tan's comments:

1) Perhaps they were an off-handed, verbal and a very general guess. I would take the comments lightly if it were a company I was not familiar with. But the prospect is not out of line for this company, which itself is fairly amazing. However,
2) He probably meant revenues, which would include this year's 150% growth; therefore, the next two might be 75%, and still average 100%
3) If he meant revenues (or even income), he meant it in absolute dollar terms, almost certainly. So 100% increase in revenues might mean something like 85% increase in revenues per share, this year.
4) Net margins will definitely go down as time goes by, so 100% growth in revenue (85% in revenue per share) will not equal 100% growth in income (nor 85% in earnings per share).

All of SIAF's projections have proven optimistic. Ironically, I think they do include a margin for error, or a % of capacity, but they are from a fundamentally optimistic base, failing to discount for various exigencies like poor weather for HU, higher than expected disease in one or another fish or cattle farm, etc.

I agree that Solomon wants to beat expectations, but I think he has set them too high to do so, without exceptional overall circumstances.

Thing is, they absolutely don't have to double eps to triple the share price, each of the next two years, with room to go in a third, if everything else falls into place.
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viking86

10/07/12 7:24 PM

#20139 RE: Petrejus #20117

I also think that JF (Nisse S) is expecting better results for 2012 and 2013 than the official guidance. I remember having read about some of his divi predictions that led me to interpret it that way as stated in one of my posts months ago.
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Traderfan

10/07/12 7:43 PM

#20142 RE: Petrejus #20117

You guys should be a bit more cautious with your expectations. So far it was more the other way around in the past or do I need to remind you that Solomon originally did project 1 USD in EPS for 2012 and the one day quietly took that down to less than 70 cents? I guess you remember that since this 1 USD in EPS for 2012 projection was also made during a meeting in Stockholm back then if I remember correct. I also don't need to remind you of the weighted oustanding share number projection which was a couple of millions lower for 2012 until just recently. There was other stuff like the "no dilution below 1.50 per share" stuff and more. Not that it will matter that much whether we come in with 1 or 1.15 per share in EPS for 2013.