Plantation land bank: 22,763 hac
Plantable area: 13,000 hac

Mature area ( accumulate):
2011 - 2,000 hac
2012 - 1,451 hac ( 3,451 hac )
2013 - 1,594 hac ( 5,045 hac )
2014 - 3,967 hac ( 9,012 hac )
2015 - 1,815 hac ( 10,827 hac )
2016 - 2,173 hac ( 13,000 hac )

Prime Mature area accumulate:
2015 - 2,000 hac
2016 - 3,451 hac
2017 - 5,045 hac
2018 - 9,012 hac
2019 - 10,817 hac
2020 - 13,000 hac

Planted of trees in year:
2011 - 2,173 hac ( Fully planted 13,000 hac )
2010 - 1,815 hac
2009 - 3,967 hac
2008 - 1,173 hac
2007 & before - 3,872 hac

I base on the trees age to estimate the FFB. Need to get back to my office to retrieve the data tomorrow.

Steelheart. The announcement in coming days would be a catalyst to breakthrough 23 cents. Next week, it is going to be a high time for Asiapac.

Hard to say. You may not enjoy good price to collect back later.

Not many interested in this counter. I am collecting tickets.

Be patient. One more week to go.

It could be attracting much interest after we have revealed information of the plantation data. The FEB production is booming from this year onward. Enjoy the party while CPO price moving up.

How to buy cheaper after this guy suddenly placed 50 lots order.

This fellow scare off the seller at 1.6+. Nobody want to sell even at 170. It can be fried easily to 180.

You should have bought many lots. I just managed to grabbed some at 1.6 +. Want to collect more at this level of prices are not easy.

Not many people notice and hard to collect more at cheaper price. Those shareholders would only sell some for fun. Waiting it to announce good results for the next few quarters. It's the harvesting period.

I have collected past few years plantation data of INNO. The FFB growth should be at least 50% in year 2014 and compound growth about 30% for year 2015 & 2016.

ckliew88. If you feel this counter would worth above RM 2.0 then why are you worry to buy at 1.6 plus?

I have not analysed Ivory.

This is a illiquid counter but upside potential is high if you look few years ahead from now. I don't expect fast money.

Let see how the investors and newspaper response tomorrow.

You can read in Explanatory Note under B2. Variation of results against preceding quarter

What a joke! profit RM 325 million?

After
- excluding net gain in fair adjustment and re-measurement of associate of RM 207million
- excluding gain in one off land sale RM 135 million

Equivalent operating LOSS RM 17 million

They would probably announce on 28 Feb 14. I am not in hurry to let go given its future potential and huge unbilled sales.

You can check it out in the financial results for 3rd quarter 2013. That's why I am willing to wait it coming announcements even though my paper profit 30% was gained less than a month.

573 million unbilled sales. Just imagine how well it would perform in coming quarter.

Currently, I focus property (Asiapac & KSL) & plantation companies. It's high time for plantation counters since CPO prices have been rising recently and potential of El Nino impact on palm oil business latter.

Bought at 3.40. It' still worthwhile for me to buy 3.50 cause i would not expect to sell at this price.

I bought Kulim & TAAN too.

I don't feel different much between 1.55 & 1.65 since the potential is there . I will collect slowly.

After making a comparison with other plantation companies, it seems worthwhile to buy now but take time to collect ticket.

It is hard to buy many shares at low price. INNO has fully planted its 13,000 hectare of land. It enjoys double digit growth of FFB production at least in next 5 years.

There are about 70% of its mature area at prime stage. Hope it would list its plantation units.

Optimus7. Thanks. With your few words response, I can feel that you have achieved high returns from your investment. I achieved my breakthrough by focusing my resource. There were few times I had invested one counter alone representing more than 50% of my portfolio. It is risky but worth for the returns.

Yeah. turbo charge. It's the 'feel' making a difference after going through long period of time. The feel of using bankers money to place a bet in the market is great.

Optimus7. Agreed with with you for the learning curve. It actually takes 12 Years for me to learn in the market. Just managed to get some peanut in that period. I can only see my capital started doubling from 2 years ago. I could be a slow learner. Part time job ma.

An Alternative: Palm Oil on Degraded Land

An attractive alternative is to expand palm oil production on degraded land instead of forested or peat land.

In this context, degraded land refers to areas that were cleared of forests long ago and that now contain low carbon stocks and low levels of biodiversity, such as alang alang grasslands. According to economic analyses by WWF1 and Indonesia’s National Development Planning Agency2, as well as fieldwork carried out by WRI and local partner Sekala, many of these areas have suitable soil for oil palm cultivation, can produce comparable yields relative to recently deforested land, and are viewed as underproductive by local communities.

A number of studies indicate that there is enough degraded land to accommodate Indonesia’s expected oil palm expansion past 2020. The Indonesian government estimates that a strategy that diverts future oil palm expansion away from peat to degraded land could reduce projected greenhouse gas emissions by 37 percent without a significant reduction in total economic benefits.

Local fund managers & retailers to support. Foreign fun are hopeless.

You are so good in turning and direct. hahaha

Why Biological Assets of TAAN is much lower than Jtiasa in term of RM/ hectare? TAAN is partly indirectly owned by Pec Mo. That's why TAAN is able to fetch land in better location.

It seems that Jtiasa has planted a lot palm oil in peatland. It costs much more due to

" Other than legal and regulatory requirements, it is also not commercially sensible to develop on deep peatlands because they pose a challenge to machine mobility and require a higher fertiliser input. The cost of constructing and maintaining the roads would be very high, as materials like stone will have to be imported from elsewhere. Crop stability will also be an issue. The high water content of peatlands mean that palm oil plantings often have to be made on elevated pedestals to prevent the roots from being in standing water. As a consequence, many trees fall off due to lack of support. "

Now, I understand why Biological Assets for Jtiasa is stayed at sky high in term of RM / hectare.

Extract from Wilmar:

Peat is an accumulation of partially decomposed vegetation matter. Over time, the waterlogged soils prevent the organic matter from fully decomposing, thereby creating a thick layer of peat soil, also commonly known as peatland. Peatlands perform a significant carbon storage function for the planet.

In recent decades, huge amounts of carbon stored under tropical peatlands have been released into the atmosphere due to deforestation, land use change and fire activities. Such events have undone and upset the carbon sink function and as a result, compounded the problem of global warming.

Wilmar has a policy of not establishing plantations on deep peatlands (peat soil depth of 3 metres or more), in accordance with the Indonesian national regulations. In lowland areas where shallow peatland (less than 3 metres) development is permitted, we adopt a sound hydrological management approach that takes into account critical parameters such as water levels, stream discharge properties, flooding, water quality, peat subsidence, soil properties, erosion sedimentation and fire incidence.

Other than legal and regulatory requirements, it is also not commercially sensible to develop on deep peatlands because they pose a challenge to machine mobility and require a higher fertiliser input. The cost of constructing and maintaining the roads would be very high, as materials like stone will have to be imported from elsewhere. Crop stability will also be an issue. The high water content of peatlands mean that palm oil plantings often have to be made on elevated pedestals to prevent the roots from being in standing water. As a consequence, many trees fall off due to lack of support.

It is CPO that need to go through refinery. FFB is processed to produce CPO. Many plantation companies have FFB processing plant.

No worry. There are plenty of time for transporting. Shelf life is almost 6 months.

Extract from Commodity Knowledge Center:

There are a number of factors which impact the quality of palm oil during storage. These factors are light, oxygen, moisture and heat. In order to maintain a the quality of palm oil during storage these elements must be properly managed.

Crude palm oil is stored in steel tanks at a temperature between 88 and 105 Fahrenheit. This temperature is required in order to prevent solidification and fractionation. During filling and draining of the storage tanks, the temperature will be increased above the 105 Fahrenheit. The storage tank will never be completely filled, because the headspace is filled with CO2 to prevent oxidation.

The maximum storage period of palm oil is 6 months. After 6 months period the palm oil has an increased chance to turn sour and the acid level of the oil will rise to unacceptable heights.

The movement of share price is much depend on CPO prices. Alternatively, CPO processed from FFB ( peat land ) can be transported to other refinery. It may incur more transportation costs.

The contribution of plantation segment from Dellyod is much higher than MKH in term of EPS.

Dellyod:
Number of shares: 96,782,283 ( 31% of MKH )
Planted land: 12,751 ha ( 85% of MKH )
Mature area: 12,751 ha
Prime Mature area(estimate) : 4,028 ha
Young Mature area: 8,723 hac

MKH:
Number of shares: 314,427,000
Planted land: 14,400 ha
Mature area: 13,800 ha
Prime Mature area (estimate) : NIL
Young Mature area: 13,800 hac

Bought some. A good fundamental company with dividend yield 3%. Not many people know about this company due to lacking publicity or coverage. I had to dig out my old records to study its future potential in plantation segment.

If you ignore the effect of Rupiah devaluation temporarily, it is a good choice to pump in the money. Bear in mind, its plantation segment would have another 24% FFB production growth in year 2014 when achieving almost 100% of mature area.

Listing of its plantation units were speculated 2 years ago. Any fresh news?

If i am not mistaken, its fully planted area is 12,751 ha.

Everyone has different ways to control their emotions in trading/investing. It depends on the individual investor ability or preference to defend the external pressure during the high volatility of share price.

Emotion can be easily ignored through:
- not to watch share price movement
- buying good fundamental companies on regular basis ie quarterly

Personally, I am trying to control my emotion through
- setting criteria in managing or picking a stock
- comfortable portfolio allocation
- exploiting a small margin facilities
- building a strong believe by studying fundamental of companies & making comparison
- Focus in company's bottom line and debt level
- identify my ultimate motive ( play zero sum game or investing )
- pressure reduction through profit taking or loss cutting

Dellyod would be able make some profit in the coming announcement. The effect of unrealised loss on foreign exchange would probably be RM 8 million.

Same same. You have done your homework too. This coming quarter results is going to be better since the devaluation of Rupiah against RM was 4.6% only as compared to last quarter 14%.

My personal view. Knowledge and experience alone are not the main factors to determine whether an investor can be a winner or loser in the market. More crucial is the ability to control our Fear and Greed in order to be successful in investing.

It's a zero sum game if you trade shares of a company without paying any cash dividend or capital repayment at all.