Posted by JT Yeo > 2014-05-20 07:27 | Report Abuse

Hi Sos, I read on the The Edge that an average per ha require a cost of RM19,500 to plant, 6000ha a year means RM117 million. CBIP would not have such a money or free cash flow of that huge right?

Posted by JT Yeo > 2014-05-20 07:45 | Report Abuse

ok OSK mentioned they probably would be taking in term loan

Posted by sosfinance > 2014-05-20 08:04 | Report Abuse

Yes, cost per ha is about RM16,000 - 19,500 per ha, spread over 3 years.

Posted by JT Yeo > 2014-05-20 08:45 | Report Abuse

their patents and technology interested me, the plantation plan also, but that will increase the capex and reduce FCF, have to research deeper to make sure they can be another GENP or KLK but not some so-so company lol

Posted by sosfinance > 2014-05-20 09:17 | Report Abuse

Their existing business is construction and engineering biz in oil palm mil. They also manufacture vehicles for plantation uses. Yes, RHB mentioned about the patent renewal and pioneer status, else they will be taxed.

I am looking from a biz point of view, not as an analysts. They are planting 6000 ha p.a for the next 10 years. It will cause them RM1b - 1.4b. They will definitely require loan. As long as loan is used on a good assets (cash generating assets) it is fine. That's why I said 10-15 years, not one or two years. Analyst look at ONE year horizon, so, if your investment period is one year, please, do consult the analyst.

Posted by Firebird2 > 2014-05-20 09:53 | Report Abuse

sosfinance, thank you for the article that you wrote. I get to learn more in the counter CBIP that I have invested in. This investment will be for long term and I wont be selling regardless of whether the price is up or down. I believe in the management doing the right thing and hope to be rewarded in my selection.

Posted by JT Yeo > 2014-05-20 15:32 | Report Abuse

Yea I get what you mean, many companies' management always make promises to execute plans but not all of them get done. Not saying CBIP can't do what they say, if they can do 60,000 ha in 10 years, thats the perfect scenario, so just need to look at what are the potential downside that might prevent them from achieving that in the long term, like maybe cash, competition etc. If we invested in KLK or GENP since 2000, the CAGR today would be over 20% p.a.

Posted by stockoperator > 2014-05-21 15:45 | Report Abuse

yape good company.

Posted by oopstikus > 2014-05-23 16:21 | Report Abuse

No doubt CBIP is a good company which i'm holding since 2.5 and will continue to hold and it will turn out like what you said. Thanks for sharing

Posted by Lee CY > 2014-07-05 10:35 | Report Abuse

i also want to buy

Posted by sosfinance > 2014-07-07 09:36 | Report Abuse

I look at CBIP as EXISTING BUSINESS (whatever it has up to 2013) and NEW POTENTIAL BUSINESS. Its existing business is doing well with double digit growth, mainly the downstream of palm oil biz. The NEW POTENTIAL BUSINESS is the upstream, cultivation of palm oil. But this is a very slow and long term biz. You may even want to wait a few years, until they have announced they have planted 30,000 ha before you buy this counter. At the moment, they planted only 6000 ha, another 4 years to go.

So, if you buy know, your focus will be on the EXISTING BUSINESS. So you have to evaluate the growth potential. As for the NEW POTENTIAL BUSINESS, if you like it, you can enter in 3-4 years time, it is going to be quite huge. So, during this 3-4 years time, if the CPO price is below say RM2300 per tonne, I believe you can accumulate safely, the growth of this palm oil will almost look exactly like TSH Resources today, 20% growth in CPO production for the following 3-5 years. TSH has grown from RM1.0b to RM2.5b in 2-3 years, share price from RM1.50 (2011) to today, RM3.50.

Posted by stockoperator > 2014-07-11 13:09 | Report Abuse

VERY Good I definitely like CBIP in long term. And i like it very much and so much. WELL Be patient. Thanks.

Posted by sunztzhe > 2014-07-11 15:04 | Report Abuse

Better focus on palm oil companies with fast maturing acreages rather than be a VERY PATIENT VERY LONG TERM Investor!!

Posted by stockoperator > 2014-07-11 15:37 | Report Abuse

Hei you Beach Boy, CBIP is my upcoming Bikini girl in big blue ocean.

Posted by stockoperator > 2014-07-11 15:55 | Report Abuse

I like the way you say it anyway. VERY PATIENT VERY LONG TERM. It suits me.

Posted by sunztzhe > 2014-07-11 16:36 | Report Abuse

Better chat up your bikini girl and perform an objective evaluation vide warren's methodology assessment on determining her "undervalued assets" before deciding to be very patient long term investor. Perhaps you may consider the option of a "fundamental trade whilst u r swimming in the deep blue ocean." HAHAHAHAHAHA

Posted by stockoperator > 2014-07-11 16:51 | Report Abuse

well i c all fundamentals are solid solid what? Only what price should i pay? slightly below Rm4 is good enough i guess.

Posted by stockoperator > 2014-07-11 16:58 | Report Abuse

i really recommend you to marry this bikini girl, CBIP. I am sure you will be happy and thanks me after 10-15 years.