FONG SILING (COLD EYE) BUYING ON JTIASA (TOP30 SHAREHOLDER)!!!

Whenever cold eye name appears in the annual report top 30shareholder will definitely caught public investor attention. Now i am trying to dig out the reasons why the smart investor is putting his money heavily on this company.

SOME NOTES FROM CHAIRMAN STATEMENT

SOME NOTES FROM OVERVIEW OF BUSINESS AND OPERATIONS

They are scaling down their downstream wood processing activities due to the reasons stated below

WOW!!! WEIGHTED AVERAGE TREES IS ABOVE 8YEARS.  FOR YOUR GENERAL KNOWLEDGE, THE OIL PALM YEILD WILL INCREASE AND REACHES PEAK PRODUCTION IN YEARS 7 TO 18. IT SEEMS LIKE THE FUTURE PROSPECT FOR JTIASA IN PALM OIL BUSINESS IS VERY BRIGHT.

THEIR HEADACHE PART IS ON LOGGING. HOWEVER, SINCE THEIR CORE BUSINESS NOW IS ON PALM OIL, HENCE I BELIEVE THAT THE PROFIT GENERATING FROM PALM OIL BUSINESS WILL MITIGATE AND OVERCOME THE SHORTCOME OF LOGGING INDUSTRY.

LETS LOOK AT THE PREVIOUS QR REPORT

LETS DO SOME SPECULATIONS ON THE COMING QR REPORT

LETS TAKE THE WORST CASE IF APR UNTIL JUN, THEY ARE ABLE TO SELL AT THE HIGHEST 2900, AND JUL UNTIL SEPT THEY SELLL AT THE LOWEST 2600. LETS DO SOME SIMPLE CALCUALTION

(2900-2600)/2900*100% = 10% CHANGES (WORSE CASE THE PROFIT DROP 10%)

BUT!!! THE PRECENTAGE INCREASE IN PRODUCTION COMPARE TO PREVIOUS QR IS MORE THAN 10%.

MOST IMPORTANTLY PREVIOUS QR LOSS IS DUE TO IMPAIRMENT OF GOODWILL, WILL COMING QR IMPAIRMENT AGAIN??

HAHA!! YOU GOT THE ANSWER!!!

TECHNICAL PART

PLANTATION INDEX

FCPO

JTIASA

SINCE NOW THE PRICE IS ALL TIME LOW, IF ENTER NOW, THE BUYING PRICE MAY BE EQUAL OR EVEN LOWER THAN COLD EYE PRICE. IT IS A DISCOUNT!!!

DISCLAIMER: THIS IS ONLY MY OWN ANALYSIS FOR MY OWN STUDY, NOT A BUY CALL OR SELL CALL. PLEASE TAKE YOUR OWN RISK.