Dear Friends

Today another unmistakable signs that Palm Oil share prices will bound to go up much higher

As Peter Lynch said there are only 2 real fundamental reasons why a stock goes up in prices

1) Company is earning more money

2) Company is able to reduce cost

For KLK & all Palm Oil Companies now they will earn lots more monies due to very high Cpo prices

See KLK Results

Revenue, Nav & Profit all increased

Profit up from 34.20 sen to 72.70 sen

UP A WHOPPING 112% (Year on Year)

Annualised 72.70 x 4 = Rm2.90

Price is Rm19.88

P/E = 19.88 divides by 2.90

6.85 only

If we assign P/E to 10

then 19.88 x 10/6.85

= Rm29.00

Yes if we give KLK a P/E 10 it should be worth Rm29.00

So KLK is undervalue

Now when Glove Companies doing well they either go acquire other companies or buy land to build new glove factories

That was how Supermax bought Apli & TopGlove bought Aspion from Adventa. Now no more so they bought Lands to build new glove factories with Surplus Cash

Now Palm Oil Companies also Flushed with Cash like Gloves. But lands are too expensive now & forest cannot be converted to Palm oil as in Sarawak

So KLK has bought over IJMPLANT at Rm3.10 for Rm1.53 Billions

See

KLK offers to buy IJM Plantations’ shares from IJM Corp for RM1.53 bil

KUALA LUMPUR (June 9): Kuala Lumpur Kepong Bhd (KLK) has offered to acquire 494.87 million shares in IJM Plantations Bhd, representing a 56.2% equity stake, from IJM Corp Bhd for RM3.10 apiece or a total RM1.53 billion.

Costing only 3/4 year earnings KLK FLUSHED WITH CASH COULD TAKE MAJORITY STAKE IN IJMPLANT

Lastest 3 quarters report already see KLK earn

THAT IS RM1.63 BILLION PROFITS FOR KLK IN JUST 9 MONTHS

So a cash rich Palm oil company could start acquiring other small palm oil companies.

GPlant has Rm800 Millions Cash Hoard. IOI is raising over Rm2 Billions for M & A as well

Or it could give out Extra "Special" dividends as well

And of course. IJMPLANT has almost 200,000 Acres of Plantation Lands

Now these are 2nd & 3rd liner Palm Oil Companies Ideal for Takeover as well

1) TAANN (This one has both Palm Oil & Timber Land Banks & Top holder of SWKPLand

2) TSH RESOURCES (Over 200,000 Acres of Palm Oil with 2nd Top holder of Innoprise) Owns 300,000 acres forest concession

3) THPLANT (Over 240,000 Acres of Palm Oil, Teak & Forest)

4) BPlant (Over 220,000 Acres of Palm Oil)

5) Jtiasa (206,000 Acres of Palm oil plus 1.9 Million Acres of Forest Concession)

Only thing is if they want to sell & if the price is right

All these 5 above with Such Huge Palm Oil Estates will see great earnings season soon

Let's see how things unfold

Best regards

Calvin

Please buy/sell after doing your own due diligence or consult your Remisier/Fund Manager