WHAT IS THE CURRENT INVESTORS FAVOURITE'S SECTORS?

Dorab, Fry, Thomas predicted price of CPO 2016 ranges from RM2700-RM3200 per tonne.  An analyst friend of mine predicted RM3,000.  Dorab did say he did not get it right for the last 3 years.

Predictions of commodities nowadays is tough.  For CPO, it is even harder, one have to consider weather, currency, soya oil, production inventory.  Some say the increase price (prediction) will be offset by the lower production.

Hence, some research analysts upgraded this sector to overweight.  

If we observe KLK, not much movements over the past 5 years, ranging from RM19 to RM23 per share.

For growth plantation stocks, some analysts favourite is TSH. 2011 is about 85 sen and lately, RM2.04 per share.  So, if investors are keen on plantation stocks, I suppose they should go for high growth plantation stocks.

I am neutral on plantation stocks, mainly concern on how deflation plays out for commodities.

WHAT ABOUT OTHER SECTORS?

This year will have more excitement, i.e. stocks will go through more roller coaster of up and down than last year.  Just look at AAX, moves up from 18 sen to 30 sen in a short period of time after the announced result.  

In Singapore, one analyst said, SIA profit before tax will increase S$570 milion for every drop of USD10 per barrel in crude oil price.  Those who think oil price average this year lower than last year, SIA may be a good pick.

NO ONE BOTHER ABOUT THIS STOCK AT THE MOMENT

It was one of the favourite about 2-3 years ago.  A small cap stock with double digit compounding growth for the next couple of years. Shareholders fund almost doubled.  Ready for implementing its expansion.  Project secured.

A bit difficult to classify what sector is it in (still evolving).  Most likely the size will double by 2019, barring onforseen circumstance.  Definitely not investors favourite at the moment as sometime the volume is below 100,000 shars.  I don't remember seeing this in the selection of the top 5 performers of i3 (in Jan 2016 first 2 weeks).  Perhaps this is another reason, it is not popular.  Hopefully some big guns see it later.