coming qtr result announcement plus if another surprise dividend forthcoming. Price can go much higher{ if agricultural stocks taking centre stage} look at SBO prices jump but our BPlant still stuck at the lower end
Johoran - yes. Most underrated or unloved sector despite CPO trending higher and higher for the past 10-12 months. From an average traded $2,400 price jump to app 3,800 - 4,000 price level. {up +65%} even assuming a lower average price for the full year at 3,000 per tonne still a very healthy margin. Against cost of production of between 1.600 - 1,800 { excluding sale of PK credit for their bottom line} somehow prices does not equal to economical logic. Just my own view and take on cpo counters
palm oil is the cheapest edible oil vs SBO, corn oil, sunflower or rape seed oil. Erratic weather has disrupted soybean plantings. CPO is playing catch up with the other competing oils
Total inventory of palm oil (crude and refined) is down from Jan 2021. This development is very good to keep CPO price at high level in the next few months.
Once productivity of the estates improves (currently low) and more asset monetisation take place, this stock will fly .... It's a matter of right market condition to dispose some valuable estate land to raise a couple of $billion.
Today can see some nice movement in plantation counters like SOP and even Bplant. With CPO price at 13 year highs and above rm4000 per ton it would seem like plantation counters should see a rerating soon. Most analysts only have average CPO price for the year at rm2700 per ton. As end Feb the average has been closer to rm3700per ton so its probably a matter of time before the assumption of the average price for the year has to revised up
You must be kidding ! Do you know the tough procedure to privatize a listed company ? It's not easy to get through the process if the offered price is far behind the intrinsic value .
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....
DreamEmperor
3,340 posts
Posted by DreamEmperor > 2021-03-09 02:00 | Report Abuse
Waah