If our investment decision is heavily dependent on recommendations by research houses, then we should not confine our reading to reports put up by Hong Leong Bank only.
Let's take a peek at the following salient points raised by CIMB recently.
(1) Jtiasa share price has run ahead of fundamentals.
(2) Jtiasa's FFB yields achieved at its estates have been consistently below CIMB forecasts in the past five quarters, leading to weaker-than-expected plantation earnings. Hence, there are lots of concerns about this trend.
(3) The average 15% OER rate achieved at its palm oil mills are consistently below the industry average of 20%. This continues to depress its CPO yield achievement and profitability of its estates compared to its peers.
The above is enough to paint the picture how the company is being run. I'm not buying into this stock as a result.
Two palm oil mills with the capacity 120MT/hour and 60MT/hour are expected to be commissioned in 3rd/4th Quarter 2014. The obvious improvement in yield will only happen in year 2015.
laughdieme... wahahaha. and for once i thought i was the stupidest person in the world to be the no 1 person disagreed with kyy. and he scolded me the stupidest person he knew.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Pak Lah
197 posts
Posted by Pak Lah > 2014-06-27 11:38 | Report Abuse
If our investment decision is heavily dependent on recommendations by research houses, then we should not confine our reading to reports put up by Hong Leong Bank only.
Let's take a peek at the following salient points raised by CIMB recently.
(1) Jtiasa share price has run ahead of fundamentals.
(2) Jtiasa's FFB yields achieved at its estates have been consistently below
CIMB forecasts in the past five quarters, leading to weaker-than-expected
plantation earnings. Hence, there are lots of concerns about this trend.
(3) The average 15% OER rate achieved at its palm oil mills are consistently
below the industry average of 20%. This continues to depress its CPO yield
achievement and profitability of its estates compared to its peers.
The above is enough to paint the picture how the company is being run. I'm not buying into this stock as a result.