Koon Yew Yin's Blog

Shall I sell Plantation Stock? When will CPO price drop? - Koon Yew Yin

Koon Yew Yin
Publish date: Thu, 05 May 2022, 11:42 AM
Koon Yew Yin
0 1,220
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin

These are the 2 most important questions; all investors want to know.

There are 2 basic fundamental principles for investing:

1) Among all the stock selection criteria such as NTA, cash flow, debt or healthy balance sheet etc profit growth prospect is the most powerful catalyst to push up share price.

Due to the CPO record high price, all plantation companies have reported increasing profit in the last few quarters. All plantation stocks are growth stocks. Do not sell good growth stocks.    

The most important question is “When will CPO price drop?”

Ukraine-Russia conflict:

Russia invaded Ukraine on 24 February. Ukraine has a population of 44 million people. Over 5.5 million refugees have since left Ukraine, while an estimated 7.7 million people had been displaced within the country by 21 April. 90% of Ukrainian refugees are women and children. In fact, most of the farmers have joined the army to fight Russia.

 

As a result, Sunflower oil production will be affected for a long time. In fact, they have missed the planting season for the year.

Ukraine and Russia are the major producers of the world’s sunflower oil, accounting for 7.3 and 5.8 million MT respectively in 2020. Together these two countries account for nearly 73% of the export trade in sunflower oil. In terms of overall oils and fats consumption, sunflower oil typically accounts for about 9% of global consumption and almost the entire quantum is used as a food commodity.

As a result, Sunflower Oil price has been shooting up due to supply shortage which will support CPO price for at least one more year.

CPO price chart:

 

As I have said, the Ukrainians have missed the planting season for the year which will push up CPO price for another year at least. CPO price has peaked recently. Due to the Ukraine war CPO price will soon break the old record high and establish a new historical record high.

In fact, CPO price has been below Rm 3,000 for decades. Currently, CPO price is above Rm 6,000. All plantation companies should be able to report higher profit for the quarter ending March which should be announced before the end of May, another 2 or 3 weeks.  

2nd Fundamental Principle for investing is based on price charts:

Price charts cannot lie. Do not sell up-trending stocks. The price charts for all plantation stocks are up trending; for examples, Subur Tiasa and SOP as shown below. 

 

 

The above is the 5 years KLCI chart which is almost at its trough as many investors have sold their holdings and waiting at the side line. Clever investors should take advantage of this situation to buy plantation stocks. In my opinion, the best plantation stock to buy is Subur Tiasa.

For your information, you can see from Subur Tiasa’s 2021 annual report that famous Dr Neoh Soon Kean of Dynaquest Sdn Bhd is one of the 30 largest shareholders.   

 

Related Stocks
Market Buzz
More articles on Koon Yew Yin's Blog
Hengyuan: investors must follow the chart - Koon Yew Yin

Created by Koon Yew Yin | Jun 21, 2022

As shown on Hengyuan share price chart below, it started to drop from Rm 7.39 on 17th May to close at Rm 4.34 today. It has dropped Rm 3.05 or 42% in the last 5 weeks.

Hengyuan is dropping continuously - Koon Yew Yin

Created by Koon Yew Yin | Jun 16, 2022

What should you do? If you read this article carefully, you should know what to do.

U.S. Inflation is highest in 40 years - Koon Yew Yin

Created by Koon Yew Yin | Jun 15, 2022

Russia invaded Ukraine on 24 February. No one knows when the war will be over. As a result, the prices for almost all the consumer goods including petroleum are surging to record high.

US is trapped in a death spiral: Koon Yew Yin

Created by Koon Yew Yin | Jun 08, 2022

This long article is written by Chris Hedges who is a Pulitzer-prize winning journalist, best-selling author & activist. All especially politicians should read it.

Lessons from Ukraine war - Koon Yew Yin

Created by Koon Yew Yin | Jun 06, 2022

Since Russia invaded Ukraine on 24 February, NATO nations including US have been donating military weapons and money to help Ukraine fight Russia. All of them are doing this under false pretenses.

Discussions
Be the first to like this. Showing 17 of 17 comments

speakup

look like a lot ppl sell plantations swap to oil & gas like Hengyuan & Petron

1 month ago

speakup

all sell plantations buy Hengyuan & Petron, no wonder panic buying

1 month ago

MuttsInvestor

Can tell me 4D number for this Sat/Sun coming out from Magnum ??

1 month ago

OnTime

if he can I will call him a great oracle!

1 month ago

VTrade

Kyy know need to sell plantation.
Indonesia untung many

1 month ago

emsvsi

Dear Mr Koon,

Why is it every time you recommend a stock it falls? Perhaps you need to change your investing techniques. The best stock selection method will always be Value Investing. And the best Value + Growth + Reopening stock is Genting (3182) with an NTA=RM8.26 you can invest and sleep soundly without promoting it non-stop as if the world is coming to an end

Sincerely,
emsvsi

1 month ago

Jonathan Keung

A good stock need not be promoted. Value will find its way up

1 month ago

calvintaneng

Sell all others and Buy palm oil shares are these are going up into palm oil Superbull

1. Sell all Tech stocks
Fed raise interest rate is the final straw that breaks the camel's back

2. Gloves will be reporting horrible result and losses

3. Steel will only see high receivables (Iou) that turn into bad debt

By this and August Results All will shiver as Collapse of Tech and common stocks will cause panic into safety of palm oil

1 month ago

calvintaneng

good stocks not promoted syndicates will promote bad stocks to trap newbies

Dr Neoh Soon Kean also Top 30 of

Jtiasa
Wtk
Sop
Thplant

1 month ago

amateurJR

This yr Calin yr again after a quiet 2021

1 month ago

sensonic

Post removed.Why?

1 month ago

ahbah

" All plantation stocks are growth stocks. " Yes Sir kyy.

1 month ago

VTrade

Kyy always know

1 month ago

myfuad

Cpo rise but share price is downhill why

1 month ago

StartOfTheBull

Not only plantations, all other funds go to HengYuan and Petronm.

1 month ago

Tobby

The hopeless moment of Grandpa Koon! Seems he has been out of luck since parting ways with OTB!

1 month ago

stockraider

Correct mah!

We are Lucky can invest in UTDPLANT at good price mah!

1 month ago

Post a Comment