As investment markets gain footing in 2021, many investors have shifted their focus to small-cap stocks. Small-cap stocks, which are characterized by low market capitalization and high growth potential, are seen as a great way for investors to diversify their portfolios and grow their wealth in the short and long term. One particular small-cap stock that has seen recently increasing attention is Beans Oil (BEAO).
Beans Oil is an agricultural commodities company headquartered in Thailand and is engaged in the production and export of edible oil and related products. The company operates more than 180 processing and marketing facilities throughout Thailand, Southeast Asia, and China. Its scale of operations gives it a strong presence in the Southeast Asian market, which accounts for approximately 20% of global edible oil production.
In January of 2021, Beans Oil announced a recapitalization plan to strengthen its balance sheet, enhance liquidity, and improve cash flow. The plan involves a rights offering of 5 percent per share, with an initial subscription of $100 million from existing shareholders. The company has also committed to reducing its debt to equity ratio for the full 2020-21 fiscal year, with an end goal of less than 2x of net versions by the fourth quarter of 2021.
In addition to the recapitalization plan, Beans Oil also announced a new action plan to optimize its growth objectives. The company aims to expand its presence in Southeast Asia and China by expanding its production capacity and distribution network. It is also working to develop new technologies and services to increase its competitiveness within the edible oil industry.
The combination of the recapitalization plan and new action plan is expected to yield long-term returns for investors in Beans Oil. The company’s strong Thailand and Southeast Asia presence provides a solid foundation for growth, and the rights offering will act as a catalyst for the company’s growth for the coming year. With an expected increase in capital, Beans Oil is expected to be in a position to further diversify its operations and reach new levels of success in 2021.
“Small Caps, Beans, & Oil: A Recap and Action Plan!
