sifu calvin, now days ppl goreng tech stock. avoiding palm oil stocks like a plague.....Chin Teck, even with special dividend announced, ytd up alot but then today went south.
I guess those experienced investors would have silently bought palm oil stocks 2-3 years back, anticipating this bull run in CPO. 2-3 years back some palm oil stocks did went up when price was around RM2-3k per tonne. but now RM4k per tonne, went down.
Good lord.... you even include Malaysia as a market? Do you know our cooking oil is subsidized? And do you know how it is being subsidized? Basically the gov says if you process X amount of cooking oil, you must sell X% of cooking oil to any buyer for the Malaysian market for X price (Below or at cost price).
Tesco can come and says they want X amount of cooking oil for their own Tesco brand and the factory must sell at cost price.
This is why most of our cooking oil in Malaysia, especially the palm oil cooking oil is darker in colour, and there is a health reason for it.
The gov never says you must sell certain quality to the Malaysian market, just the amount, thus the lowest quality is always reserve for the Malaysian market since the producer are 'forced' to sell at a loss or at cost.
WTF Kelvin, you really dont know nuts about palm oil.
Notwithstanding there will be political uncertainty all of us still need these
Eat food a must to survive
All gardenia bread got palm oil
All biscuit contain palm oil (read the labels)
All teh tarik got palm oil
All cakes got palm oil
All ice cream got palm oil
Your tooth paste made of palm oil
Shampoo
Haircream
Lipstick
Detergent (palm oil is there when you wash clothes )
Every time you eat Kentucky fry chicken, pizza, McDonald and all other fastfood
When you drink Milo the most popular beverage . Lots of palm oil
When you eat Maggie Mee. Lots of palm oil
All pervasive is palm oil
When your baby drink milk formula (got palm oil byproducts)
50% of all supermarket products contain palm oil As long as life exists in Malaysia there will be palm oil It penetrates and permeates in all levels of life
Why plantation companies are so low in the valuation as compare to technology companies ? looking at the plantation index, the fund simply not flowing in as compare to technology counters.
@DannyArcher the government indeed has quality specification, we call PORAM spec for palm olein; and the quality is not low; they sell both 1x and 2x fractionated olein. please do not mislead reader with perception that palm oil quality is bad and not good for health, that is totally wrong.
there is no such thing as hot press or cold press for palm, palm oil is physically squeeze become crude palm oil, then go through mostly physical refining become RBD palm oil, which then fractionated become palm olein (the cooking oil fraction). It is way more cost efficient and high yield.
during this high CPO price time, palm plantation really earn a lots cause their palm tree was planted many years ago and subsequently collecting the oil for next 20 years. So yeah, plantation make handsome profit; but refinery, oleochemicals and subsequent downstream is not.
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....
calvintaneng
56,471 posts
Posted by calvintaneng > 2021-08-03 12:30 | Report Abuse
Note:
NSOP, RIVERVIEW, KFIMA & CHINTECK FIRED UP WITH "SPECIAL DIVIDENDS"
ONLY GOOD TREES BEAR LOTS OF FRUITS
SO GOOD TIMES ARE RETURNING TO PALM OIL