GMG Global

GMG Global: 3Q13 net profit dwindled 87.4% y/y (+31.3% q/q) to $1.5m, while revenue slumped 19.9% y/y (-6.4% q/q) to $243.7m as a result of a 3.6% drop (+6.2% q/q) in tonnage of 78,732 tons sold, and 16.9% decline (-11.9% q/q) in rubber prices to $3,096. Management expect 4Q13 natural rubber prices to remain range-bound at the current price of $2,842. GMG has NAV of 10.72¢ per share and a net debt to equity of 0.16x. As a result of its diminishing earnings, GMG Global now trades at a steep 40.8x trailing P/E versus its 3-year historical average of 18.6x, and downstream peer Halcyon Agri's 15.8x.