I am interested in this stock, any advise whether to buy at current low price as the company just suffered a loss? Any fundamental based advise on the company and its background and future plans?
After analyse through the latest quarterly report. Few things to highlight on the fundamental of this company. 1) Savings from finance cost which amounting to RM1.5mil X 4qtr = RM6mil, 2) Cash in hand around RM104mil or 46.5 sen per share, 3) Trade and other receivables are amount due from discontinued entities and to be received from FGV amounting to RM 95.7mil or 43 sen per share, 4) Balance of other receivables which is prepayment to acquire brown/green field land bank.
Directors get huge increase of salary compare to last year 2015. Why not throw some breadcrumbs (small dividend) to shareholders? Seems like they have been working harder than before ; even after selling so many subsidiary companies. Yeah, next year increase your own salary to another additional million.
Page 89 of Annual Report 2016 13. Directors’ remuneration
The number of directors of the Company whose total remuneration during the year fell within the following bands is analysed below:
I still see this counter as a good buy based on the strong cash, low PE, future potential is good, from the fact that they have land in indonesia and entering the property business. Any more update guys? please share thanks
i am moving away from Steel, Tin stocks, O&G and focusing on plantation now... why?
(1) the world population will continuously expand and demand for this cheapest cooking oil will always be there...the palm oil smear campaign had lost its arguments and people are realizing its even better oil than soybean oil...the price will soon be comparable to soybean's price.
(2) the land that had been relentless cleared in east malaysia and indonesia had come to a saturation point for planting further palm trees...meaning supply source is slowly becoming limited.
(3) you cannot find cheap land anymore....if you want to buy land for personal plantation purpose..i bet cannot find it cheaper than RM70K per hectare...look at thee price these companies are selling.
(4) O&G has huge upper limit on the price of Crude Oil (due to shale oil) just like palm oil has lower limit on its price due to biodiesel..
(5) Unlike all these steel companies, where they are dependent on raw material price, tariffs and selling prices...plantation's only major costs is free...the sunlight & natural minerals found from the soil and decomposing organic material of dead trees... Its like your costs are almost free..
even the laborers are being helped by machines which can harvest fruits from the trees...its just a matter of time - cheap robots will be introduced to harvest the fruits - they will work day and night for free with the fuel provided by Biodiesel from palm oil itself. If Japanese were ruling malaysia...this robots would have been here by now.
very soon one will never be able to afford to buy any land for their own..
PLANTATIONS IS THE ULTIMATE INVESTMENT for MALAYSIANS.. never lose your market share on this land bank. Price will only go up from now.....no returning back.
Based on the quarterly result, they have sold their plantation land to FGV for RM655mil, balance purchase consideration to be collected is RM95.7 mil. Current cash in hand as at Sep 16 is RM104.4 mil, if collected the amount from FGV is RM95.7 mil + RM104.4mil = RM 200.1 mil or 89sen cash per share Total Liabilities RM30mil Assets in hand including land in Batu Kawan 20acres+, land in Indonesia x hectares.
They had sold their local plantation segment to FGV. Current operation left - Property segment at Sandakan, Indonesia plantation which newly planted since 2013. Once Indonesia plantation segment can be capitalized for biological assets. Then should be able to catch up.
The management is targeting to launch an industrial property development at northern Peninsular Malaysia with an estimated gross development value of RM130 million in 2017. The property is strategically located at proximity to the new gateway to Penang, the second link. Despite the generally soft property market at the moment, the management is poised to launch the project. For plantation division, the Group has planted 2,788 and 50 hectare in Indonesia and Malaysia respectively. The Group will continue to expand its oil palm planted area at Kalimantan Timur and Selatan, Indonesia with a planting target of 10,000 hectares within the next 3 years. With the CPO prices trending upward due to recently erratic weather pattern, increasing demand from biodiesel initiatives and growing world population the management deemed that the long term prospect for plantation business are promising
What could this share go to in 3-4 years, once the Indonesian plantations start bearing fruit ? Also any idea what the dividend could be by then. This share could be a very good long term investment.
CWallUK, from the past history, GL was generous in giving out dividend every 6mths. If the plantation in Indonesia starts to generate good profit. I believe the management will follow back the previous practice to reward the shareholders.
This stock is under-analyzed, hence the undervaluation of its business. But its ROE is not consistent as well. For now, its looks good to hold for next few years, then need to analyze again
Many thanks to riskabsorber and limen12 for their information, I may buy this share and put in my bottom drawer for a few years. i have recently bought TH plantations and Sarawak Plantation.
Because they just pivoted from doing plantation to property development, need time for their remaining palm oil to mature, and revenue from property sales to materialize in their income statement.
other plantation stocks r making money..but this one is losing money due to poor management..better sell off all the plantation lands n distribute money to all shareholders..n no dividends declared also..
Golden Gateway, an upcoming SME Industrial Park located on a 20.5 acre land at the southeast part of Batu Kawan. Strategically located off Jalan Perusahaan Valdor, just a mere minutes drive to Batu Kawan Industrial Park. It is only 5 minutes away from Penang Second Bridge.
This freehold development comprises a mix of light and medium industrial units, with built-up area ranging from 5,500 sq.ft. onwards.
Project Name : Golden Gateway Location : Batu Kawan Property Type : Light & Medium Industrial factory Built-up Size: 5,500 sq.ft. onwards Total Units:: 54 Tenure : Freehold Developer : Golden Land Berhad
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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....
Peter Wang
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Posted by Peter Wang > 2016-11-22 09:37 | Report Abuse
Then still can buy? wonder why many ppl still Q