Good morning Friends,

The Law of motion tells us for every action there is a reaction.

In year 2019 Petronas pumped in Rm30 Billions for OGSE Upstream

And Upstream O&G Maintenance stocks like Carimin, Penergy, Uzma & Dayang jumped as high as 500%

Calvin lived through the exciting Bull years of OGSE in 2019

Many missed then chasing stocks of lesser momentum (But don't chase OGSE stocks now as Petronas will reduce capex & also pivot some funds to green solar energy now)

In year 2020 Corona Virus Worldwide Triggered the Once in a Century Glove Superbull

Topglove, Harta, Kossan & Supermax powered up more than 1,000%

Calvin went through that supersonic run when we bought Supermax at Rm1.73 chun chun & rode it to the peak of Rm24.44 (Over 1,000% upside)

Again many missed because they were preoccupied with Stocks of lesser catalyst or no catalyst at all

(And don't chase glove at wrong time now as there is HUGE GLUT Plus the China Factor)

Will You Be Missing The Palm Oil Bull Run?

THE CATALYST FOR PALM OIL BULL RUN ARE MANY (For OGSE the Single Capex of Petronas Rm30 Billions Cash infusion & Glove Bull catalyst was the raging coronavirus)

1) USA & BRAZIL DROUGHT CAUSED SHORTFALL IN CORN & SOYBEAN - LEADING TO VERY HIGH PRICES (AND PALM OIL A PROXY TO SOYBEAN OIL ALSO RISE IN TANDEM)

2) FAILURE OF CANADA'S CANOLA CROP DUE TO DROUGHT

3) CHINA'S VORACIOUS DEMAND FOR ITS DEPLETED SWINE HERD DUE TO SWINE FEVER

4) INDIA'S CROP FAILURE DUE TO MONTH LONG FARMER PROTEST & CROP FAILURE BY MONSOON FLOODS

5) RISE OF BIOFUEL REFINERIES IN USA AS THEY PIVOT TO GREEN ENERGY

6) NO MORE CONVERSION OF FOREST LANDS TO PALM OIL IN MALAYSIA & MORATORIUM IN INDONESIA

7) WHILE LANDS FOR PALM OIL STOPPED POPULATION GROWTH OF 80 MILLION PER YEAR CONTINUES (1% GROWTH OUT OF 8 BILLIONS MEAN 80 MILLION BABIES ARE BORN EACH YEAR

8) BEING A CONSUMER FOOD 50% OF ALL SUPERMARKET ITEMS CONTAIN PALM OIL

SO THERE IS ONLY ONE REASON FOR OGSE BULL RUN: ALSO ONE REASON FOR GLOVE BULL RUN

THERE ARE MANIFOLD REASONS WHY PALM OIL IS NOW GOING UP INTO A BULL RUN TIME AS CPO PRICES CROSSED RM5,000 A TON

ACTUALLY NO NEED RM5,000 : RM3,000 A TON ALREADY SUFFICIENT

RM5,000?

THAT IS AN EXTRA ORDINARY SUPER BONUS

Will you miss the Bull Run?

After missing OGSE Bull for 2019?

And missing Glove Bull last year?

Better stop & THINK

Best regards

Calvin Tan Research

Please buy/sell after doing your own due diligence or consult your remisier/fund manager

NOTE:

For CYCLICALS - RIGHT TIMING IS OF OUTMOST IMPORTANCE

Sell too early is bad

Buy too late also bad

You Should Buy A Cyclical At The Beginning of Upturn

Then Sit Still & Ride Through It

Buy during pessimism & Sell into Peak Euphoria

As of now only 20% to 30% of the Market is bullish on Palm Oil

So we can still safely buy 

When 90% of the people are bullish on palm oil?

Then we must Refrain from buying & go contrarian & sell to Euphoria!

To do this needs lots of discipline & against the feelings & opinions of the masses - the masses of 80% who eventually lose in the market