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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Sorbic Int | SORB | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 2.50 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 2.50 | 2.50 |
| Top Posts |
|---|
Posted at 08/1/2015 09:06 by skier100 A pocket summary of SORB for new investors:* SORB is one of the world's leading food sorbate (preservative) suppliers. People must eat... * Revenues = £14m; * Net assets = £10m; * Cash = £7m; * Profit = £1m; Upcoming news: * Potentially up to £6m compensation coming from a Mongolia factory dispute; * Potential repayment of £2m loan-notes compensation from a subsidiary; * Current marcap today = £2m... |
Posted at 08/1/2015 08:40 by skier100 SORB right now has *£14m revenues, £10m net assets, £7m cash, £1m profit, and potentially up to £6m compensation coming from Mongolia*... and a current *£2m marcap*... Hugely undervalued. |
Posted at 07/1/2015 15:40 by skier100 Given the £14m revenue, £7m cash, £1m profit, and strong order book for 2015, SORB deserves a rerate to 10p as a minimum starting point (currently 3p, with a £2m marcap). |
Posted at 28/6/2012 13:59 by woodcutter I sold my very small holding recently along with my CFC holding which was much larger, both at a loss. I know there are many who believe in SORB and CFC but this latest set of results has confirmed my feelings that these businesses are poorly managed and are a long way from reaching the goals i had originally expected, despite the China growth story. I think the bottom line is i foolishly expected the type of performance you'd expect from a uk managment team and we forget how inexperienced these business people are, particularly in terms of a quoted company. They are a long way from sustainable profitability. Good luck if you're still holding. Woody post note It's hardly surprising that there's a growth in revenue if you're reducing your margins and selling product at a significant loss. |
Posted at 28/2/2012 10:42 by moathunter AAAinvestment- here's a couple of *possible* disconfirming points to your thoughts above:"the previous owner got the benefit of an increased shareholding through meeting profit targets - not hard to guess whats happened." Referring to Ray Ang Wee Boon, he still owns 55% of SORB and built up the original company over 7 yrs. Both points suggest a majority shareholder who takes a long-term view and unlikely to frontload, do aggressive accounting and defer Capex. I think more likely the then LVST could afford to cherry-pick the most profitable contracts during 2005-8's assumed supply-demand imbalance (high demand, constrained supply since it takes time and risk to build new output). "that directors and/or major shareholders may have a vested interest in keeping the share price down" Certainly. Yet perhaps in this circumstance, esp. raising capital via share placing to fund the expansion's working capital (and therefore critically hasten the realisation of future cash flows released by the new factory), a down-trodden share price is strongly to their disadvantage. ~~~~~~~~~~~~~~~~~~~~ One bullish point: the recent profit fall could be considered a natural part of a cycle for such industries: long-term bulk pre-priced customer contracts, allied to fluctuating raw material and energy prices = volatile profits over a decade period. So the financial results need normalising. I.e. a high probability that profits will revert upwards to a long-term average. Second bullish point: look at market share distribution- one massive market leader in Wanglong Group, top 10 sorbate producers owning say 90% of the market and many tens of preservatives producers serving the remaining small market share for customers wanting tiny batch runs of sorbates+other food additives combined. That market share distribution is power law distributed or "80/20", strongly suggesting that the leaders including SORB having a source of competitive advantage- likely major economies of scale (and other sources such as customer switching cost/ order fulfilment capability). Such competitive advantage, coupled with expected market growth and low threat of substitution away from sorbates... ... well let's see what happens over the next 3 yrs. (I stupidly 'chased' the share price to 22p recently (but it's very thinly traded), so you know where I stand). Anyway, I really dislike talking positively about current holdings. It screws your judgement, so no more from me on this. I'd be delighted to oblige any holders feeling nervous and wishing to sell :) |
Posted at 23/11/2011 11:36 by moathunter I think SORB is half priced at £11m / 22p (based on 52m shares fully diluted- see my post 61 above) and estimate its true value is around £25m / 48p. In essence, SORB manufactures a food preservative which is very safe and has been in existence since the 1960s. Commodity-like prices? Check out its high historical margins. This is believed due to economies of scale (high fixed cost of production and distribution) and scope (solely focussing on sorbate preservatives and nothing else whatsoever, so they know the least energy and raw materials needed to yield the most preservatives etc.). However, these high profits were likely due to temporary high demand, constrained supply imbalance, so it needs adjusting downwards for conservative projecting forwards. The company has built a new factory to increase production capacity by 100% in the next couple of years, with such an expansion being very low risk and simple for them- they've increased by 50% a few years ago. So it's a high probability that they'll double revenue without a hiccup with this oncoming expansion. More importantly, their new factory is in Inner Mongolia, with cheaper land, cheaper energy and tax benefits than China. This is the equivalent to UK manufacturers in the past moving their production eastwards- first to Eastern Europe and then to Far East. As a 3rd largest sorbates manufacturer in the world, it would appear they are ahead of their rivals' cost curve and so should maintain their position and subsequent above normal profitability for a decade or more. Also there's the back drop of secular long-term demand for sorbates as a few billion Chinese and Indians become more urbanised and hence need more preserved shelf food over "eat on day it was picked" food. Directors own over 80% of the shares. Net asset Value at present is £15m with no intangibles on the balance sheet and some of that £15m is a nearly complete new factory currently standing idle (and therefore worth more when it's an operating asset). SORB should realise £26m revenues in the next few years and £2m+ annual free cash flow to be worth around £25m. |
Posted at 27/10/2011 18:04 by jonny flame Yeah, I think this is a pretty good long term hold. SORB & CFC are my Chinese direct exposure shares, also give me exposure to food and increasing consumption. |
Posted at 28/2/2011 19:13 by moathunter Please note that the raising of capital stated in post 58 above will impact shareholders as follows.The company states they now have 38,563,500 ordinary shares- existing shares of 33.4m and 5.2m ordinary shares mentioned in post 58. BUT, to be conservative in valuing the market cap of SORB, you should assume that the convertible loan notes will convert (just as you would with stock options). Both A and B loan notes issued can convert at 26pence. Par value for the bonds (as seen on the PLUS website under "SORB") is the usual £1000. £1000/ 0.26p = 3846 shares issued for every bond that converts. There are 1,562 A Notes in issue and 876 B Notes in issue giving 2,438 Loan Notes in aggregate. 2438 x 3846 = 12.75m shares issued upon full bond conversion. 12.75m upon conversion + 38.57m shares currently outstanding = 51.32m shares + 0.6m share option to Hermes and JM Finn Capital = 51.9m shares fully diluted. 0.28pence x 51.9m shares = £14.5m market cap, not £10.6m cap at 38m shares. 0.26p = £13.5m 0.20p = £10.4m. In other words, the commonly stated "38m shares in issue" understates the true market price to buy the whole of SORB- it's more expensive to buy at fully diluted than some may recognise. |
Posted at 28/2/2011 17:38 by jonny flame Thanks morgannn, although I already knew this. What I was trying to get at on the CFC bb, was that they have secured the funding so there will be no delay to completing the new factory. I was interested in people's views on this. I think SORB have a bright future and, come the end of the summer, once the new factory is in production I can't see the share price languishing below 30p. 25 February 2011 "The new site in Ulanqab City will double Sorbic International's existing manufacturing capacity. The factory building is largely complete and construction remains on track in terms of timeline. The project is expected to be completed by late 2011". 14 January 2011 "As a consequence of the approval process, the GBP1.6 million due from Hermes is now anticipated to be received towards the end of Q2 2011. This anticipated delay, in the absence of alternative funding, would delay completion of the new factory. Accordingly, the Company will consider its options to facilitate completion of the factory which will include looking to secure alternative/bridge funding". |
Posted at 25/12/2010 17:25 by jonny flame SORB is a long term investment, one to hold for the next 5 years.CFC looks to be progressing very well, SORB is perhaps 2 years behind CFC in terms of it's development and growth story. |
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