Dear Friends of i3 Forum
They say, "SEEING IS BELIEVING"
And a Picture is worth a Thousand Words
Calvin joined a very small Whatasapp Group of around 100 Invited Members
The Name is called "EAGLE VISION FIRST MOVER"
1) It has Eagle Vision
An eagle sees the furthest by virtue of its great eye-sight. The eagle is the 1st to see among birds
So we hope to SEE AHEAD of the Market
2) It is called "FIRST MOVER"
We also hope to move First in the Market. We are not followers but Seek to Move Independantly
So far so good
Among our group is Mr. Lee from Perak. He owns a small 45 Acres Oil Palm Estates
And this is what he shared with us
Mr. Lee said the Hock Chew people of Manjung are the happiest people in Malaysia by virtue of them being owners of Palm oil Plantations: All are laughing their way to the Banks as FFB (Fresh Fruit Bunches) are now at World Record High
Mr. Lee called Calvin in Singapore and gave a breakdown of his Oil Palm business
1) Mr. Lee bought those Palm oil lands and started planting new crops about 5 years ago.
Now they are starting to bear Fruits (Not the most fruitful age yet as it is still young at about 5 years old)
2) At the time he first shared FFB was Rm940. Latest FFB has risen to the Unbelievable price of Rm1,040 per metric ton
See the [payment voucher]
The Above showed Mr Lee sold 3.67 Tonnes of FFB (Fresh Fruit Bunches) at the Amazing Price of Rm1,040 per ton or Rm3,816.80 in total from just one sample.
3) Then he gave a breakdown
Applying fertilizer, weed killer & cost of transportation came up to Rm250 per ton of FFB
4) The Net Profit
Rm1,040 less Rm250 = Rm790
That is Rm790 divides by Rm250
= 3.16 (X) Times
That is A Whopping 316% Profit! Simply mind blowing for him & all the happy Oil Palm Estate owners of Perak
At Rm790 x 45 acres = Rm35,550 monthly retirement income
That is also why Mr. Lee has bought into many Oil Palm shares.
Who is Mr. Lee?
I met Mr. Lee sometime in year 1990 in KL when he used to come down to KL to collect Used Cars for Sale.
Some years later his Used Car Business grew big & he bought a nice piece of prime land with Visible Road Frontage in Manjung to rent out to Banks who stored repossessed cars on his land & also his own car show room as well
After 25 years this land became so prime & valuable Mr. Lee decided to build houses as a Developer for Sale. It was a huge success. Now nearing retiring age Mr. Lee has diversified into Oil Palm Plantation for regular source of income which he thinks is quite simple & easy
Now. We as a group also did our Research by calling up the Captains of Oil Palm industries by phone, whasapp & e-mail
To our glad & happy surprise most of listed Company CFO, COO, CEO, Company Accountants & Secretaries of Oil Palm Companies are sanguine about the Oil Palm Business
Mr. Shane, the Assistant Manager of IjmPlant said
"ESG concern and the cutting of forest does not apply to us Planters because it was the Loggers that cut down the forest so when we arrived at the scene the land has already been cleared. So we just did the planting.
"And at this time all Oil Palm planters should be very happy"
As to hedging:
"Ijm Plant company policy allowed forward sales up to 50% but they usually only did up to 20% or 30% only
Jtiasa last quarter made a loss from forward sales and now no more so Jtiasa should see better results
As for TAANN & SOP they don't sell forward which is very excellent. Tsh resources only does 10% to 15% forward sale which is minimal
So it looks like Great Times are AHEAD For Most if not all Oil Palm players
Yes, Mr. Lee called up one oil Palm listed company & was very furious (We can't disclose name here)
He has been holding this Company share for umpteen years and yet he saw them reporting losses after losses
So he called them up & spoke to the company accountant
He said, "We know oil palm companies have gone through a very tough time & rough patch when FFB fell below Rm300 a ton & Cpo below Rm2,000 a ton. But at this time. Mr. Lee emphasized his words, "BUT AT THIS TIME" When FFB Prices have reached Rm1,000 World Record high how could you be making losses?
Don't tell me if all Car dealers are doing roaring business you have bought some stolen cars & suffered losses? By way of example
So how could you guys still made losses at this time?
Mr. Lee has to pay more for Fertilizer & Weed Killer being a small timer. Listed Company got savings by bulk purchase.
So don't tell me AT THIS TIME you can still report losses?
The accountant replied,
"Oh, we have a lack of fruit harvesters. Our palm oil trees are planted in the most inaccessible places & hard to reach. Also our fruit yield is among the lowest among all listed Companies"
THAT WAS VERY LAME SILLY EXCUSES & MORE EXCUSES which made Mr. Lee angry
How come you being a listed company acted so foolishly by buying Inaccessible oil palm trees which are so hard to harvest? Why you perform worst than ordinary small timers who are making the most money while you being listed for decades are STILL MAKING LOSSES?
"Oh talk to my Boss" I am only a small accountant in the company
Mr. Lee concluded that there must be hanky panky and leakages.
When they collected FFB for sale
Say out of 10 lorry load of FFB (Fresh Fruit Bunches) only 7 to 8 lorries reached the Palm Oil Mill while 2 or 3 lorries are diverted "Elsewhere"
That is still endurable because they show up a profit
NOT WHEN YOU DIVERT 7 OR 8 LORRIES OF FFB AWAY AND ONLY REPORT 2 OR 3 LORRIES OF FFB!
THAT IS REALLY JUST TOO MUCH AS THE RESULT SHOW LOSSES???
So we learn as we go along
Among the Most Clean and Honest Company is TAANN (AN EXCEPTIONAL HONEST COMPANY WELL MANAGED)
SOP is also very transparent.
Hopefully, we can discover & uncover more & more honest & good companies to invest in
Warm regards to all,
Please buy or sell after doing your own due diligence or consult honest remisier and honest fund manager
Above lorry with Fresh Fruit Bunches should go to the correct palm oil mill
VERY HONEST ONES
100% ACCOUNTED FOR FROM OIL PALM PLANTATION TO MILLS OR REFINERIES
Not so honest
One or two lorries could be diverted "ELSEWHERE"
Lots of leakages
SEEK OUT THE MOST HONEST, EFFICIENT & TRANSPARENT ONES TO PUT YOUR HARD EARNED MONEY IN
Created by calvintaneng | Mar 25, 2023
Created by calvintaneng | Mar 11, 2023
Created by calvintaneng | Mar 02, 2023
damn, i didnt know there was such a thing lorries "diverted elsewhere".
Haha some even syphon out the oil from palm oil mill.
A friend who owns 1000 acres mature oil palm plantation in Pahang has been grossing around RM1 million per month from FFB sales. Works out to RM1000 per acre per month or an astounding RM12,000 per annum. Best ever in its history. But then he has a very reliable manager and the plantation is very well run. High yields, no leakages. He is very happy.
I think for the leakages/ siphoning/ "diverted elsewhere", any idea where can get readily computed CPO % yield of all listed Cos?
@Calvin, why not SWKPLNT as pure Palm oil play instead of TAANN, which is the controlling shareholder of SWKPLNT? Also with Dato Wong Kuo Hea as the executive director, they have manage to reduce the debt and improve the current ratio.
Taann own Swkplant as top holder
both are good
only Taann got timber as well
Warren Buffet said he looks for 3 things in a person
The most important is integrity
Without integrity an intelligent or talented person also no use as he/she can outsmart you and play you out
So integrity and honesty stand out in any company he invests in