Sime Darby's latest quarterly report for the period ended March 31, 2010 shows a loss of RM308,630,000. This is incredible! Not showing a profit is bad enough. A massive loss is surely a catastrophe. The core business of Sime Darby (SD) is in oil palm. The price for this commodity has been around RM2500 per tonne for the period. This alone would have generated immense profit for SD. So, what happened? Some one says they have the best brains in the country. I don't know. What I do know is that the best brains do not necessary produce the best results. Very often they are best only for themselves.
The government has assured us that a thorough investigation would be carried out at SD. It best they do it because the world is watching us. Unless we have transparency, accountability and integrity, foreign funds will shy away from us.
Every time a disaster happens, the CEO needs only to step down. He then goes away, a free man, and probably lives happily ever after. Is this enough? The devil must be given his due. Reward him if he delivers. Punish him if he misbehaves; let the action befits the crime.
Those who have bought SD at high prices, expecting good profit, must be cursing now. They have my sincere sympathy. I do not own any SD shares. If I have them, cutting loss or taking profit is the best action I can think of. In other words, I would sell them now.
Some say big is beautiful. I say apples are better than papayas.