Despite CPO at historic high of $4600 making plantation very profitable, I am puzzling why retaiil investors are not excited as much in plantation stock as they are in glove and steel ?
Totally agreed with all the writers view on palm oil coverage. Especially star newspaper coverage and IB silent comment on the booming CPO historic price { tracking other competing soft veg oils } Goldman and JP calling it commodity boom . Here we need plantation companies to kickstart by giving special big dividend to reward minorities shareholder { bearing and holding the shares for the negative sell down in the last 3 years }
Faet run. Bplant GM will announce will not declare deviden instead all profit will going to invest in the future tech of Algae oil which will be handled by his relative. Run run
UP paying a special dividend of 0.50 per share and a final dividend 0.15 per share =0.65 per share {xdate 26 April} much higher than glove producers or the banks. Edge and the star hardly cover any positive on the market development. Keep on harping environment. Please remember all other agricultural producers { e. g. Corn, wheat, rapeseed are not subject to the same scrutiny and NGO critics} this are trade issue raised by the western NGO. Corn and SBO are not heading their 8 year record high prices. Farmers in US are gleeming { and with Biden announcing more pro farmers policy} looks like more legs for this commodity. Whereas in Malaysia { the government of the day at best is warming the Plantation or Agriculture portfolio}
@Posted by Plantermen > May 4, 2021 9:08 AM | Report Abuse Same old song against Palm Oil since the 1990s during my early career. Now retired, also hearing the same old song. Either the Americans are using stale strategies, or our PO industry never changes much????
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!
Then why promote Wtk leh ?? 1. The owner , directors and insiders already accumulating quietly without fanfare mah! 2. The palmoil & timber production volume of wtk, mhc, jtiasa, boustead, ijm plant already creeping up loh...this is further support by the record price of its commodities. Just imagine u have higher prices & higher volume....that will be a very important sign of higher big profit coming mah! 3. The share price already corrected over 3 yrs of downtrend previously, when there is a big shakeout of all the weak holders...u can only grow more optimistic as time past by loh! 4. Wtk is sitting on some prime land that invested at a very low cost near major town & city, they are good development mah! 5. With all the liquidity & quantitative easing & low interest rate environment, u can see big inflation will be coming loh...!! Wtk in commodities business plus very big cheap land bank is a very good inflation protector mah!
Based on the above i think wtk , jayatiasa & ijmplant is the best pick to make profit & this is concur by sifu calvin findings also mah!
Today's share price increase merely a small recovery to the previous month selldown. It is still below the share price of $0.75 when CPO was merely $3,000 in early Jan 2020. As such , the plantation stock prices have a lot to catch up to fair valuation.
Remember 2 of the most richest & savvy investors w.buffet & bill gates like investing in farmland now mah!
U can emulate them now too mah....!!
Quickly Buy into palmoil plantation now b4 it 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!
Then why promote Wtk leh ?? 1. The owner , directors and insiders already accumulating quietly without fanfare mah! 2. The palmoil & timber production volume of wtk, mhc, jtiasa, boustead, ijm plant already creeping up loh...this is further support by the record price of its commodities. Just imagine u have higher prices & higher volume....that will be a very important sign of higher big profit coming mah! 3. The share price already corrected over 3 yrs of downtrend previously, when there is a big shakeout of all the weak holders...u can only grow more optimistic as time past by loh! 4. Wtk is sitting on some prime land that invested at a very low cost near major town & city, they are good development mah! 5. With all the liquidity & quantitative easing & low interest rate environment, u can see big inflation will be coming loh...!! Wtk in commodities business plus very big cheap land bank is a very good inflation protector mah!
Based on the above i think wtk , jayatiasa & ijmplant is the best pick to make profit & this is concur by sifu calvin findings also mah!
"Today's share price increase merely a small recovery to the previous month selldown. It is still below the share price of $0.75 when CPO was merely $3,000 in early Jan 2020. As such , the plantation stock prices have a lot to catch up to fair valuation."
@Johnzhang, sorry I disagree with you... 75c does not reflect a fair price of 3000 for CPO. It should be higher than 75c if that is what your statement is referring to.
@lLetsfly, what I merely said is when CPO was at $3,000 in early Jan 20, bplant was already $0.75. i didn't try to justify whether $0.75 then was a fair valuation or not. I only try to draw stock price comparison when CPO was $3,000 then and $4,600 now.
Lack of awareness on CPO price vs plantation bottom line {profit contribution} partly contributed to the lethargic retailers level of participation. Remember the CPO price downtrend over the last 3 years another contributing factor. Unlike the glove counters which was heavily promoted { hardly any news coverage by the main stream press or the IBs}
@Johnzhang ahh ok yes, then definitely we have an agreement there. Right now CPO is historically high, which means it should be justified to push the share price to its historical high also :)
Without disrespect to any sifu. BPlant need to sustain the recovery momentum by riding the price hike with a special dividend for their long suffering minorities
@Jonathan, I think bplant will pay out 70-80% of it's annual profit as dividend as the parent company bstead holding need it badly too. Although bplant is still having about $2 bil borrowing, they have no hurry to pare it down as interest rate is presenly low and the borrowing is solidly backed by valuable landbank. Merely selling 2,000 acres of land )which is only a small fraction of the total landbank ) near the development area is sufficient to raise $2bil to completely repay the borrowing.
Looking at their previous cash flow statement . rates on their loans borrowed to finance the Sabah estates acquisition is competitive price in. Cash flow on {CPO }price projections at betw $2400 - 2700 { in 2018 } was sufficient to finance the new land acquisition. CPO physical price traded yesterday at 4,600 per tonne. Bankers will do a indepth price valuations and projections before they finance the projects
Jonathan, can’t always factor in land sales as this is not their core biz. Based on core business, the loan interest is dragging the profitability. Paying huge div now it’s not prudence. LTAT is looking at long term, and for sure there will be long term gain. No doubt bplant will come out from pandemic stronger if they don’t have huge loan dragging them. Even if CPO price low next time, they will carry a way lower loan interest baggage. That’s my 2 cents la…
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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....
Kishin Sham Mahtani
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Posted by Kishin Sham Mahtani > 2021-05-03 16:54 | Report Abuse
why Volume spike and price up is it one day show