@klsejeff88, Cepat harvested more FFB in Q1 2022 than same period one year ago (21,977 MT vs 19,694 mt ). Do you think they have employed monkeys to harvest the fruits ?? Although labour shortage is real, the plantation management will know what to do to prioritise the work in the field. Trust me that harvesting FFB is right at the top of the list. Other field upkeep works can be delayed while whatever can be mechanised is machinesed.
Cepat's earnings this year should increase by over 50%. With a prospective EPS of over 25 sen a share for year 2022, it is trading at a prospective PE of under 4. I see its share price being manipulated.
Small investors have lost interest in this counter. It has to post record beating second quarter results to entice them back. They have failed to notice this jewel.
CPO price has stayed above RM5,000 a ton for 4 months and above RM6,000 a ton for almost two months. The war in Ukraine won't end so early and CPO price is unlikely to dip below RM5,000 a ton this year. CPO price averaged under RM4,000 a ton last year and Cepat still earned 17.4 sen a share. Even assuming there is no increase in crop production, Cepat is expected to earn much, much more this financial year.
russia-ukraine war will be over when russia occupies the best part of ukraine which means no food (veg. oil, wheat, etc) can be exported because russia will still be under sanctioned
only when uncle sam (biden, senate, congress) says all sanctions on russia are lifted and nord stream 2 is fully restored and russia can keep ukraine. how likely it that?
Small investors seemed to be in a state of panic today and drove Cepat's share price all the way down to 84 sen a share. Fear will drive people to behave irrationally. Even if Cepat's profit remains the same as last year, it will still earn 17.4 sen a share, translating into a PE of less than 5.
Cepat earned 16.38 sen a share last year and assuming production remains the same this year, it shouldn't earn less than 16.38 sen a share this financial year unless average CPO price in the second half falls below RM2,000 a ton.
This is the difference between investors and speculators. Investors will calculate here and there before making a decision, recession fears will drive speculators to become irrational.
palm oil drop to rm3800 metric ton,........all plantation farmer scream to hell already,......plantation stock not looking good,........more down side,......
@8899EL8899 "palm oil drop to rm4000 level,.......cepat will register big loses in the coming quarters,......better go to IT & technology stocks,......" So sure...go short cepat
Cepat's final quarterly earnings should be in the region of 2 to 3 sen a share, translating into full year earnings of around 13 to 14 sen a share. It is thus trading at a prospective PE of around 5.5
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....
stockraider
31,556 posts
Posted by stockraider > 2022-05-28 11:05 | Report Abuse
Good to accumulate loh!