Dear Friends,
Many Commodity Stocks Have Spiked up in prices like Aluminium, O&G, Some Palm Oil, Iron & Steel
There is One Class that has even gone up much higher than the Rest = Lumber & Plywood
Yet their share prices have not followed but still very cheap
So Calvin is now very bullish on Lumber Stocks like WTK, JTIASA & THPLANT
See
Lumberyards and homebuilders alike have delayed buying lumber from sawmills in hopes the price of the sky-high commodity would finally come back down to earth. It hasn’t budged, and now the buying rush is on ahead of spring and summer projects.
This influx of buyers is only further driving up the price. On Friday, the price of lumber per thousand board feet jumped to $1,048, according to Random Lengths. That’s an all-time high, and up 193% from a year ago.
That price jump is unlikely to be the last. On Monday, the May futures contract price per thousand board feet of two-by-fours jumped $32 to $1,158. That uptick would have been higher had circuit breakers not been halted 20 minutes into trading—something that occurs when the commodity is up more than $32 during a single trading day.
With the Surge of Covid 19 the new paradigm shift from office to homes have AMPLIFIED the demand for Lumber in the Renovation & Expansion of More Rooms - hence the Spike up in Lumber prices to world record after world record
VERY GOOD FOR
WTK (4243) (WTK has 70% LUMBER & 30% PALM OIL
JTIASA (4383) (JTIASA HAS 30% LUMBER AND 70% PALM OIL
THPLANT (5112) ALSO GOT BOTH TEAK & LUMBER
SO WHILE PEOPLE ARE STILL UNAWARE IT IS TIME TO STUDY THEIR COMING UPSIDE PROSPECTS
Kindest Regards
Calvin Tan Research
Please buy or sell after doing your own due diigence or in doubt consult your Remisier or Fund Manager
HOTTEST HOME BUILDING TIME WITH LUMBER SPIKING UP IN PRICES
HOMES FUEL SURGE IN LUMBER PRICES
IT'S BEEN CRAZY: PANDEMIC HAS CAUSED LUMBER PRICES SOARING
FAR MORE THAN ALUMINIUM WILL BE THE PROFIT OF LUMBER STOCKS LATER
Created by calvintaneng | May 04, 2024
Created by calvintaneng | May 02, 2024
Created by calvintaneng | Apr 29, 2024
Created by calvintaneng | Apr 27, 2024
https://tradingeconomics.com/commodity/palm-oil
Above is CPO historic Chart
Click on 25Y button to see CPO now reached All Time Historic High
Better than Aluminium
2021-04-14 20:00
https://tradingeconomics.com/commodity/lumber
Above is Lumber Price Chart
Click on 25Y button to see LUMBER NOW UP LIKE A BALLISTIC MISSLE
LUMBER IS VERY FAR BETTER THAN ALUMINIUM. ALSO EXCEEDED CPO PRICE SPIKE
2021-04-14 20:02
Haha
no leh
I can't post link on content page as they cannot be opened
Go see my 3 links on
Aluminium
Cpo
And lumber
Click on the 3 links
Then click on 25 Year history to get a better picture of how each has performed
People go gaga over aluminium not knowing that Lumber has been doing exceptionally well
2021-04-14 22:57
Good morning
Lumber closed at another new world record price of USD1,212
https://tradingeconomics.com/commodity/lumber
2021-04-15 07:56
People say, "Why Cpo & Lumber prices up but the shares of these companies still not moving?"
Over a short term the market is moved by phycology of the masses chasing hot news
But if there is NO REAL EARNINGS all these stocks will not perform well & those who chased at peak will get TRAPPED.
On the other hand unloved, unmoved stocks if GOT REAL EARNINGS will result in
Special dividends like MHC PLant (4 sen dividends declared)
SO STOCKS WILL GO UP IRRESPECTIVE OF PEOPLE.
. And corporate earnings drive stock prices.” Peter Lynch
If a business does well its share price eventually follows.
http://mastersinvest.com/newblog/2018/3/28/stock-prices-follow-earnings
2021-04-15 08:04
More than 50 years ago, Benjamin Graham, the 'Father of Value Investing', observed "In the short run the market is a voting machine, but in the long run, it is a weighing machine". That one quote contains as much wisdom today as it did then and it's implications have been long recognised by those we consider Investment Masters.
What Graham was referring to were the two forces acting on securities, namely human psychology and business fundamentals. In the short run, human psychology can overwhelm fundamentals. However, over the long term it's a securities earnings that determines returns.
2021-04-15 08:10
Well said
Over short term 90% of human psychology overwhelm and distort fundamentals
OVER THE LONG RUN EARNINGS (REAL EARNINGS OF CASH) THAT DETERMINES RETURNS>
When all the hype, hooha & noise are gone ONLY STOCKS WITH REAL SOLID EARNINGS BOUGHT WITH A REASONABLE GOOD ENTRY PRICE WILL DO WELL FOR TRUE INVESTORS EVENTUALLY.
2021-04-15 08:14
As calvin sifu said timber is at record price & palmoil at record price surely some optimism will spillover to wtk 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 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 is the best pick to make profit & this is concur by sifu calvin findings mah!
15/04/2021 9:46 AM
2021-04-15 09:54
Pinky
Yes I also like Ta Ann only thing is I still wait at Rm2.50
I like bombed out bargains like Wtk and Jtiasa which are now too cheap to ignore
I think lower liners Cpo and lumber shares will outperform blue chips and 2nd liners
See
Epf selling Uplant and buying cheaper Sime Darby Plant and Genting Plant
2021-04-15 11:12
At the ultimate height of the bull run all stocks in the similar industry should do well as a whole
Only difference is some can only go up by 30% to 50% while outstanding ones can up by 200% to 300% or even more
So we must search deeper to see which will give the best potential upside
2021-04-15 11:15
Good companies hard to buy cheap
Better to buy good companies at fair price than to buy lousy companies at cheap price
Ta Ann profitability quite consistent (except 2020-Q4)
WTK and JTIASA...always swing between black and red punya
2021-04-15 11:22
Many shall be restored that now are fallen and many shall fall that now are in honor.”
— Horace
The above famous investment statement was quoted Dr Neoh of Dynaquest in his book (circa 1985)
Let Calvin explain
"Many shall be restored that now are fallen"
Many out of favour, unloved & bombed out stocks people avoid will be restored in cyclical upturn.
See after the 2nd World War both Germany & Japan were totally and completely destroyed
No body would want to invest in them
YET OUT OF THE ASHES BOTH GERMANY & JAPAN ROSE UP TO BE THEIR BEST ECONOMIC REVIVAL
Germany has the most solid growth in the West with Merc Benz, BMW & AUDI outselling all those Others Fiat, Ford or Alfa Romeos
Japan's Toyota, Honda & Nissan took the world by Storm
THEIR ECONOMIES WERE RESTORED
SO ARE BOMBED OUT STOCKS WHICH WILL SEE UPTURN IF THE CONDITIONS FAVOUR THEM
NOW WITH DROUGHT, WEATHER HAVOC SOYBEAN & CORN HAVE GONE UP IN MULTI YEAR HIGH - THUS PULLING UP DEMAND FOR PALM OIL LIKE NEVER BEFORE
INDIAN FARMERS IN 7 MONTHS PROTEST WILL NOW SEE FURTHER PURCHASE OF PALM OIL FROM MALAYSIA
THE COVID 19 LOCK DOWN HAVE EMPTIED SHOPPING MALLS & OFFICES AND FLOODING PRIVATE DWELLINGS AS PLACES TO LIVE AND WORK
THESE CREATED PENT UP DEMAND FOR HOUSE RENOVATION FOR MORE SPACE AS HOME-OFFICE USE
THUS THE HUGE DEMAND FOR LUMBER LIKE NEVER BEFORE
ALL THESE ARE POWERFUL CATALSTS THAT PROPEL DEMAND MORE THAN SUPPLY
SO GOOD TIMES ARE RETURNING FOR ALL PALM OIL AND LUMBER STOCKS
THOSE THAT DID BADLY WERE "OVER SOLD" IN BAD TIMES
SO LIKE THE PENDULUM SWING - THEY WILL ALSO GAIN THE MOST IN GOOD TIMES
TA ANN DID NOT CRASH MUCH IN BAD TIMES SO IT WILL ALSO NOT GO UP SO MUCH IN GOOD TIMES
FOR WTK, JTIASA, THPLANT, TDM, RSAWIT, MHC PLANT, BPLANT THEY ARE ALL BOMBED OUT
SO CALVIN WHO LOVE BARGAINS WILL GRAVITATE TO THEM
2021-04-15 11:51
Why buy when others rush into buying higher and higher and higher shares which are not explainable?
We buy when the good economic conditions benefit these named companies, yet others ignore.
When they come, who will benefit? Those who saw & bought.
2021-04-15 11:56
There are over 1,000 Stocks to pick from Bursa
And there are different Classes of Stocks
We should Dividend dull stocks like Utilities during bad times as defense
There are also Stalwarts that grow steadily
We also pick Asset Plays, Turnarounds & Cyclical Stocks
According to Howard Marks he became a Billionaire Picking & Mastering Cyclical Stocks
Peter Lynch also another expert on Cyclicals. His Magellan Fund beat Warren Buffet Berkshire for 13 years because he picked Cyclicals that OUT PERFORM
And Cyclicals should be bought at bottom just before they turn up
To do that we need to SEE AHEAD. To see BEFORE others see.
By the time EVERYONE SEES then there are no more bargains
So we must learn to PURSUE VALUE
THE PURSUIT OF VALUE IS A LIFE LONG PROCESS
See
https://www.eaglevisioninvest.com/the-relentless-pursuit-of-value/
2021-04-15 12:02
Hahaha Ahbah
Nice to see you here.
No lah.
We cannot have darling in stocks.
We can only buy when they are undervalue
And we must certainly sell if they have gone into overvaluation
Wtk Directors have bought Wtk as high as 50 sen and still holding tightly
To buy below Director entry price is great
Hope you will make enough and stop eating too much unhealthy nasi lemak
Go eat healthier food, Ahbah
2021-04-15 12:22
Remember Calvin's 3 Rules
Rule number 1
Rule number 1 is not to lose money
Rule number 2
Rule number 2 is to remember rule number 1, that is, never to lose money
Rule number 3?
Rule number 3 is
He that is low needs fear no fall
Wtk, Jtiasa and Thplant were all over Rm1.00 to Rm1.80 in good times
Now they are so low with up to 80% discount from peak
So there is very little downside from here
With downside protected we now await an upside boom time
2021-04-15 13:27
For commodities companies (whether minerals or agricultural/woods), once the market prices of these commodities keep going up for sustainable periods, and with same costs of productions, profitability will shoot up. With this, their share prices will increase.
If you look at Metals X Ltd (Australian listed co., strong in copper mining), when copper price was very low early last year, the share price went down to A$0.12 and now, AS0.24. You see, 100% increase.
Keep the foresight and faith.
2021-04-15 14:02
Somebody ask me, can we but these named shares? I say "Yes".
They ask me again,can we keep these shares? I say "Yes".
Now, they ask me again & again, can we sell these shares? I say "Well it is your money", but as for me, "I keep them". Hahahaha.
2021-04-15 14:13
Thats correctloh! This is precisely what raider is emphasizing all this while mah!
Commodity share like wtk & jtiasa are like spring, when u press down alot & when release it will....jump up or spring up...... will be very sharp & strong loh!
Posted by CCWONG > Apr 15, 2021 2:02 PM | Report Abuse
For commodities companies (whether minerals or agricultural/woods), once the market prices of these commodities keep going up for sustainable periods, and with same costs of productions, profitability will shoot up. With this, their share prices will increase.
If you look at Metals X Ltd (Australian listed co., strong in copper mining), when copper price was very low early last year, the share price went down to A$0.12 and now, AS0.24. You see, 100% increase.
Keep the foresight and faith.
2021-04-15 14:14
like spring pressed down ?
yes I remember in 1997/8 when Klse crashed to lowest 261 points Dr Neoh came out with an Article in the Malay Mail
BARGAIN OF THE CENTURY
He said Klse at 261 points is like the spring of mattress pressed down until very very hard to go lower any more
Anyone who bought at 261 index would have bought Maybank At Rm2.50, Public Bank at 80 sen and Nestle at lowest Rm11.60 then
Wtk at 46.5 sen with Nav of Rm1.73 is selling at 73% discount
Cash (pure cash alone ) is 46.9 sen
everything else free
2021-04-15 15:20
Hey, Calvin, have maybe your doctor can reduce your dose of Ritalin?
Can also suggest drinking coffee and Ritalin not very good.
Too hyper!
Cheers.
2021-04-15 19:46
Drink coffee?
Of course
I read from Robert Kuok Memoir that he drank coffee with milk. He already live past 97 years old
But as in everything we must eat & drink in moderation
Let Calvin tell you the goodness of Soybean or Tou Foo Fah for HIGH INTELLIGENCE
See & read this
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2016-03-13-story92960-HOW_TO_HAVE_VERY_HIGH_INTELLIGENCE_IN_LIFE_Calvin_Tan.jsp
2021-04-15 20:18
The demands of lumber is not back to Malaysia yet.
The industries face stiff competition fr Indonesia & Vietnam.
2021-04-15 21:28
It is not just the demand per se. The underlying factor is high inflation due to relentless money printing by the FED that dilutes the value of money
Steel, aluminium, commodities, real estate and farmlands have all gone up as a whole
Even bitcoin and ethereum have gone up as an alternate store of value
So can expect prices to stay elevated
After Usd1.9 Trillion stimulus cheques Joe Biden will next propose for Multi Trillion Usd pump priming and backed by Janet Yellen another runaway reckless money printer
Prepare for hyper inflation
2021-04-15 22:23
Nasi lemak is healthy food bcos it got santan which got some vit D which can prevent us from getting covid 19 !
2021-04-16 12:26
Today palmoii & timber price move further up mah!
Eventually it will move to the share loh!
Posted by stockraider > Apr 15, 2021 2:14 PM | Report Abuse X
Thats correctloh! This is precisely what raider is emphasizing all this while mah!
Commodity share like wtk & jtiasa are like spring, when u press down alot & when release it will....jump up or spring up...... will be very sharp & strong loh!
Posted by CCWONG > Apr 15, 2021 2:02 PM | Report Abuse
For commodities companies (whether minerals or agricultural/woods), once the market prices of these commodities keep going up for sustainable periods, and with same costs of productions, profitability will shoot up. With this, their share prices will increase.
If you look at Metals X Ltd (Australian listed co., strong in copper mining), when copper price was very low early last year, the share price went down to A$0.12 and now, AS0.24. You see, 100% increase.
Keep the foresight and faith.
2021-04-16 12:28
We all shall have long life if we cook our food with coconut oil ! n we also got long life to make more esi moni from the mkt !
2021-04-16 12:30
ahbah We all shall have long life if we cook our food with coconut oil ! n we also got long life to make more esi moni from the mkt !
16/04/2021 12:30 PM
Ahbah
Pure coconut oil is ok
Processed coconut milk is different as it has high cholesterol
Nasi lemak once or twice a week ok but not every day ok
See article on
YOUR HEALTH IS MORE IMPORTANT THAN YOUR WEALTH
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2018-03-31-story-h1453316229-YOUR_HEALTH_IS_MORE_IMPORTANT_THAN_YOUR_WEALTH_BUT_YOUR_SOUL_IS_OF_UTMO.jsp
2021-04-16 14:05
Another day another super bull for LUMBER
https://markets.businessinsider.com/commodities/lumber-price
2021-04-16 22:32
lumber has long history of expensive building materials, that's why mostly roofing materials now are all mostly steels..alot of government around the world control on timbering output due to mass deforestations!! are you out of date?? Calvintaneng
2021-04-17 00:20
Alot of people do not understand this loh!.
Commodities are cyclical stocks mah....!!
U need to buy them when the share price is low, usually when profit is low or even loss making b4 they make big profit up turn with the coming announcement mah!.
U only sell....when everything is hunky dowry when every thing is bright after very major share price advancement loh!
Jump in b4 too late b4 the next up turn loh!
Today palmoii & timber price move further up mah!
Eventually it will move to the share loh!
Posted by stockraider > Apr 15, 2021 2:14 PM | Report Abuse X
Thats correctloh! This is precisely what raider is emphasizing all this while mah!
Commodity share like wtk & jtiasa are like spring, when u press down alot & when release it will....jump up or spring up...... will be very sharp & strong loh!
Posted by CCWONG > Apr 15, 2021 2:02 PM | Report Abuse
For commodities companies (whether minerals or agricultural/woods), once the market prices of these commodities keep going up for sustainable periods, and with same costs of productions, profitability will shoot up. With this, their share prices will increase.
If you look at Metals X Ltd (Australian listed co., strong in copper mining), when copper price was very low early last year, the share price went down to A$0.12 and now, AS0.24. You see, 100% increase.
Keep the foresight and faith.
2021-04-17 10:12
When big boys not interested in pushing up. There is nothing anybody can do about it.
2021-05-05 17:39
Yes we can do something mah!
We can start promoting & sing aloud loh!
Posted by investor223 > May 5, 2021 5:39 PM | Report Abuse
When big boys not interested in pushing up. There is nothing anybody can do about it.
2021-05-05 23:26
calvintaneng
https://tradingeconomics.com/commodity/aluminum
Aluminium price chart above
Click on the 25Y button to view
Aluminum only up about 50% from ALL TIME HIGH
2021-04-14 19:57