Total debt has been on the rise, approaching US$1.7bn as of Dec08. Total debt is now at the highest level ever. Notice the sharp increase in the last two quarters of last year. Investment on non-core assets has soared recently, especially in 4Q08 that went up by US$782m.Investment in non-core assets soared especially in the last two quarters of last year, interestingly occurred as problem at parent started to surface.
Escalating debt level has been one of our key concerns, especially as the debt has been used to finance non-core investments. Further, the acquisitions announced early this year on two coal mines and a mining contractors came as a shocker as valuations look excessive while these deals do not fit into Bumi long-term strategy. We view earnings visibility would be limited until there is more clarity on these deals. SELL.
Tidak ada komentar:
Posting Komentar