Ann: A$51.5M SALE OF PHOSPHATE RESOURCES MALAYSIAN PALM OIL SUBS, page-5

First 5 Last

Share
Profile

Follow
Barooona

355 Posts.

27

27/09/23

20:16

Post #: 70061114
Share

Originally posted by PickEm: ↑

Hi Baroona, thanks for the compliment. I spent weeks researching CII. They're so unusual on the ASX as they scarcely promote themselves.. you have to be a bit of a detective. There is no operating need to promote as everything is internally funded, but I think it's more due to the Asian influence. From memory the shares on issue now are the exact same number on issue in 2010. A different culture there too, not a single shares dilution !

In answer to your question, stellar profit growth and delayed cashflow typically go hand-in-hand over exceptional growth periods, and CII's has been exceptional.

CII purchased 60% of the existing Kemoil business, while Liven is a completely new 60/40 entity.. and barely a year old ! Yes we linked up with a well respected Singapore trader, but how did Liven go from zero to hundreds of millions in revenue and of supplied product.. all over a single year? We have the trading ability and logistics network, both essential, but there is something else.

Another thing that struck me. CII managed to negotiate a majority 60% ownership in both cases. I think that our partners recognised our balance sheet strength could fund exceptional growth by insentivising purchasers to make their purchases from us rather than a competitor. We offer extended payment terms and also, I suspect, we act as a partial guarantor to approved customers who access a 3rd party loan, against which we possibly give some form of cash security against the loan pools first losses. I am speculating here, but the puzzle pieces fit. CII's debtor balance shot up one heck of a lot a year after the Kemoil Oil addition on 1 July 2021. Interestingly, pleasantly surprised to see a much more modest increase a year after the Liven Nutrients addition on 1 July 2022. I suspect we pulled back on Kemoil customer incentives and applied them to Liven customers.

I also suspect Prosper was even surprised by the massive revenue this model has generated. Without the ownership and expertise of Prosper on board, I'd be very wary of the debtor balance.. but we do and the balance is stabilising. A director was also spending his own hard-earned buying on-market. It seems to me that Prosper has realised CII has a big tiger by the tail, which this funding will reenergize. Exciting times but all DYOR

Expand

Thanks for the reply, the growth looks crazy since they started the logistics department. I am still trying to figure out exactly what is happening haha.

CII Price at posting: $1.50 Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

BIO

Biome reaches intellectual property milestone in strain development program

RSG

HotCopper reacts as Resolute Mining told to pay US$160M if it wants its CEO back

RCE

Recce scores $6.75M R&D rebate

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

HAS

Yangibana 33% complete says Hastings, as it provides clarification on funding

First 5 Last

Add PRG (ASX) to my watchlist

(20min delay)
Last $1.21		Change 0.000(0.00%)		Mkt cap ! $139.0M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
1	20000	$1.22

Sellers (Offers)

Price($)	Vol.	No.
$1.25	3	1

View Market Depth

No.	Vol.	Price($)
1	20000	1.220
1	963669	1.200
1	1	1.120
1	4700	0.950
1	770	0.650

Price($)	Vol.	No.
1.250	3	1
1.270	4846	1
1.280	5000	1
1.350	5000	1
1.400	5000	1

Last trade - 16.12pm 14/11/2024 (20 minute delay)

PRG (ASX) Chart

Day chart unavailable

Ann: A$51.5M SALE OF PHOSPHATE RESOURCES MALAYSIAN PALM OIL SUBS, page-5

Biome reaches intellectual property milestone in strain development program

HotCopper reacts as Resolute Mining told to pay US$160M if it wants its CEO back

Recce scores $6.75M R&D rebate

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Yangibana 33% complete says Hastings, as it provides clarification on funding

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: A$51.5M SALE OF PHOSPHATE RESOURCES MALAYSIAN PALM OIL SUBS, page-5

Top Stories

Biome reaches intellectual property milestone in strain development program

HotCopper reacts as Resolute Mining told to pay US$160M if it wants its CEO back

Recce scores $6.75M R&D rebate

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Yangibana 33% complete says Hastings, as it provides clarification on funding

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News