MHC's dividend yield in bad time and good time is better than the interest rate in FD. In addition, there is capital appreciation if you invest at the right time. The world always needs edible oil. Keep a long term perspective.
Due to smaller transaction volume, MHC share price needs longer time to achieve its value. MHC should be around RM1.00-RM1.20. MHC dividend is much higher than FD.
Why sifu calvin call on buying into plantations relentlessly are very sound investing advice loh?
Yes buy what u understand loh!
Remember 2 of the world most richest & savvy investors w.buffet & bill gates like investing in farmland now mah!
U can emulate them now too mah....!!
Thats why the 2 richest savvy investors have taken note the point of concern that palmoil & commodity price cannot going up forever like the case of glove & eventually the commodity price will also fall 1 day mah!
To address this issue or concern w.buffet & bill gates, say buy farmland & palmoil plantation, even the commodity price fall, u still have great protection on the value of cheap plantation land & farmland mah..!
If u buy into cheap land, u have both margin of safety accorded by cheap land plus prospect of reaping great profit from high palmoil price loh!
Thus u should Quickly Buy into palmoil plantation now, b4 its price shoot up mah!
Time to be a little bit more contraian in view of mkt at reasonable high level mah!
Warren buffet says inflation is definitely coming in view of low interest interest and speculative sign such as bitcoin, rubbish stock price run up sky high and unrealistic stock valuation & expectation and now raw commodities price run up mah!
Bill Gates already bought alot of farmland at low in preparation & in anticipation for the coming armmagedoom coming mah! Why would one the world tech best richest owner switch alot of his investment into farmland, this bcos farmland or value real estate if it is bought at reasonable low price, u cannot go wrong over longterm bcos the availability of land is limited, u cannot manufacture land like bitcoin mah!
Coming back to msia the equivalent to farmland is oil plantation, u still can get it real cheap & it is paying u reasonably good dividend loh...this is the best defensive & offensive play like bill gates and warren buffet had highlighted mah!
As calvin sifu said timber is at record price & palmoil at record price surely some optimism will spillover to plantation & timber share price mah!
But this up 1 to 2 sen is chicken feed mah, why up so little leh ??
Timber & palmoil share r suffering from lack of production mah and also huge impairment losses on its assets mah & previous falling share price mah! Thus they are jittery on recovery of palmoil & timber share loh!! They want to see actual profit b4 jump in loh!! That means if u base on profit...as indicator that means the share price will be lagging loh!
Malaysia has put a cap on land for oil palm to 6 mil ha (5,87 mil ha used as at 2020). Indonesia has implemented a 3 years moratorium on new planting. There is great pressure on the Indonesian government to extend the moratorium indefinitely due to environmental reason . Consequently, AVERAGE CPO price will stay much high in the future amid stagnant /lower supply and in face of global warming threatening production (of other oil crops too). Oil palm plantantion will fetch a lot more due to scarcity of land. Existing plantantion companies which generates huge amount of free cashflow can only expand thru brownfield acquisition. M&A activity and privatisation will heat up in this sector .
Production data for August looks great. Traditionally, Q3 results was substantially better than Q2. Bearing this in mind and the high current CPO price, MHC is expected to announce a very good results in Q3. Looking at the EPS and PE, the current share price is a joke. Are the fund managers sleeping?
MHC is a well managed company, they have no problem with labor issue. The production data had been very consistent over the years. The results will be affected if CPO price drops to RM2000 but this will not happen for a long time to come. It will be a matter of time this counter flies. Hold on tight.
who are the sellers? unless they play both bid and ask to slowly accumulating the shares. If hold on tight and be patient, to breach 93 will be sap sap soi.
@calvintaneng No, last time he recommended this company to me was around 3 months ago. I think he is still bullish on this plantation stock. I am not too sure but I only have KLK, BKawan, GentingP for now
...... by playing with bid and ask price ( based on low quantity ). If no panic selling, it will be difficult for him to collect substantial quantity. May be another buaya will move in to make the game more exciting....
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....
novice2020
133 posts
Posted by novice2020 > 2021-08-26 11:56 | Report Abuse
MHC's dividend yield in bad time and good time is better than the interest rate in FD. In addition, there is capital appreciation if you invest at the right time. The world always needs edible oil. Keep a long term perspective.