Recently all plantation stock prices have been dropping despite CPO just hit a new record high price as shown on the price chart below. The reason is because too many investors over sold to take profit. The more they sold, the price continued to drop which is affecting investors who used margin finance to buy more shares. Margin finance is a double edge sword. It cuts both ways.
At the current price level, no sensible investors would sell. Unfortunately, many investors are forced to sell to meet margin calls. In fact, clever investors should take advantage of the situation to buy at the cheap sale price level.
There are a few reasons why CPO price continues to shoot higher and higher.
1) Malaysian Ringgit is depreciating as shown on the chart below. All plantation companies will gain additional profit due to the foreign exchange advantage.
2) The Ukraine-Russia conflict has affected Sunflower oil export as Ukraine and Russia produces about 80% of Sunflower oil in the world. In fact, they have missed the planting season for the year.
3) Recently the Indonesian government-imposed CPO export restriction which will continue to push up CPO prices in the world market as shown on the CPO price chart below.
Based on FFB production of each company in the last 3 months is the most accurate method for comparison.
The table below shows the comparison of each company’s 3 months FFB production ÷ current market capitalisation. Subur Tiasa and Jaya Tiasa are the 2 best stocks.
Name |
FFB (ton) |
3 months FFB |
Market Cap. Rm. |
3 months FFB ÷ market cap |
|
Subur Tiasa |
23,117 |
|
|
|
|
|
18,295 |
64,269 |
391 million |
164 |
1 |
|
22,587 |
|
|
|
|
Jaya Tiasa |
55,363 |
|
|
|
|
|
43,722 |
151,243 |
964 million |
157 |
2 |
|
52,158 |
|
|
|
|
MHC |
10,035 |
|
|
|
|
|
9,005 |
29,639 |
236 million |
125 |
3 |
|
10,599 |
|
|
|
|
Sarawak Plant |
22,897 |
|
|
|
|
|
19,126 |
62,661 |
784 million |
80 |
4 |
|
20,038 |
|
|
|
|
SOP |
76,723 |
|
|
|
|
|
88,787 |
267,788 |
3,412 million |
78 |
5 |
|
102,278 |
|
|
|
|
Cepatwawasa |
6,982 |
|
|
|
|
|
6,713 |
21,973 |
328 million |
67 |
|
|
8,278 |
|
|
|
|
Ta Ann |
45,505 |
|
|
|
|
|
47,364 |
154,723 |
2,536 million |
61 |
6 |
|
61,854 |
|
|
|
|
Hap Seng |
43,653 |
|
|
|
|
|
40,628 |
136,468 |
2,392 million |
57 |
8 |
|
52,187 |
|
|
|
|
Teck Guan |
1,0035 |
|
|
|
|
|
884 |
3,062 |
64 million |
48 |
9 |
|
1,138 |
|
|
|
At the current price level, no sensible investors would sell. Unfortunately, many investors are forced to sell to meet margin calls. In fact, clever investors should take advantage of the situation to buy at cheap sale price level.
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4th reason: the world is flooded with some much fiat money that prices of all goods must go up.
2022-05-10 18:54
Best buys are these
Sop
Tsh resources
Taann
Jtiasa
Thplant
Bplant
Hs plant
Simedarby plant
Ioi corp
Fgv
2022-05-11 00:09
Cannot compare like this some plantation companies sell at spot price example Sop, Sarawak plantation, Taann.
2022-05-11 13:27
the inevitable post will be... "XXX has a trap..." or "Why I sold XXX to buy <another theme>..."
2022-05-11 13:41
LOL Follow UNCLE TO HOLLAND!!!! https://www.theedgemarkets.com/article/subur-tiasa-falls-much-5-after-liabilities-exceeded-current-assets?type=malaysia and still want to keep
2022-05-12 11:16
Lu tau boh ??
At the moment plantation stock are price modestly using sustainable cpo price of Rm 4000 mah!
With the current price above Rm 6000, even if indonesia comeback to the export mkt....that will not affect plantation share price bcos it is not overvalue....as it is not value base on cpo rm 6000 mah!
2022-05-12 11:48
Too bad KYY got stuck in subur. KYY Should have bought tons in sop or taann!
2022-05-12 19:32
High ffb, kernel harvests and cpo will not translate into profitability.
Don’t believe ? Just read the report of the url Ravi Kumar posted and I agree with the report. Minus the optimistic part how the management views their future performance.
2022-05-12 19:42
My stocks fell so much that I wanted to get rid of them all. So sad
@https://wordle-game.co
2022-05-18 20:30
vcinvestor
when will we see the inevitable "Subur Tiasa is rubbish" post? My bet is the week of 23-27th May. Come come PM me to place your bets
2022-05-10 16:55