WTK Holdings (WTKH MK) Technical BUY with +15.7% potential return Last price : RM1.40 Target Price : RM1.49, RM1.62 Support : RM1.32 Stop-loss: RM1.31 BUY with a target price of RM1.62 with stop loss placed below RM1.31. It is likely that the recent correction from the high of RM1.49 has ended for WTKH’s share price after it rebounded off the rising trendline and closed above the “cloud” last Friday. Given the surge in trading volume of 4.8m shares (vs 20-day average of 1.4m), WTKH also closed above both 10-day and 21-day SMA lines, suggesting an upward continuation hereafter. With the positive readings in both MACD and Stochastic, WTKH should resume its uptrend. Thus, we peg our upside target at the 1.61x Fibonacci extension level of RM1.62 over the medium term.
WTK timber segment alone has been offered a good profit to the company over the past few years. Bear in mind, it planted 9,700 hectare of Palm Oil trees as at 31 Dec 2012. I would expect the planted area grow to 10,700 hectare until last year. More important is the plantation segment would contribute positively startng this year as more trees entering maturity stage.
cy, Wtk fundamentally very sound n profitable annually.As EPS consistently improving every Quarter n with more palm trees maturing every year plus consistent profits from timber sales...this stock is a GEM yet to b discovered by more big time Investors!! Better invest now before Big boys come in n push up price above RM2.00!! Huat arrr!!!
cy, FFB production stays on the right track for the past few years. The growth rate is expected to be at least 100% for the next 3 years. In a maximum scenario the FFB production would reach 200,000mt per annum.
everything look good in wtk but the only problem of wtk is foreign funds cannot or not encouraged by environment association to buy wtk. It had been black listed. Sory to say that choose the others lahh.....
that is not so concern as long as got the demand and get earning...my only concern is the age profile of oil palm division now so that we can know exactly when is explosion earning time
The FFB production will grow gradually. It may take a bit time to wait the trees to reach prime stage. If I am not mistaken, WTK started planting 2,000 hectare in year 2007 and with an average of 1,500 hectares each year until 2012.
Bear in mind, Oil palm age from 5-8 years is considered young palm and 9-20 years is reaching prime. Age of 5-8 years yield less crop and fruit size small.
TAAN report strong result due to the following : i. Higher average selling prices of export logs by 28%, plywood products by 14%, oil palm fresh fruit bundles (‘FFB’) by 33% and crude palm oil (‘CPO’) by 18%; and ii. Sales volume of products increased by between 19% and 43%.
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....
tpchuayap
855 posts
Posted by tpchuayap > 2014-05-16 10:03 | Report Abuse
about time..........