Posted by calvintaneng > 2016-04-03 15:56 | Report Abuse

CBIP

Great post!

CBIP IS A GREAT GROWTH STOCK

It has a highly defensive Moat in Modipalm!

Its Modipalm Mill is par excellence in quality!

1) It saves on man power.
2) It saves on time.
3) It extracts the most Oil compared to all other millers.
4) It is economical to set up.
5) Assembling to operation takes only a 4 short month.

See www.youtube.com/watch?v=FDpy4nwFarw.

Posted by Dolphin1 > 2016-04-03 16:22 | Report Abuse

Why must buy expensive stock? Why not choose cheaper 1?

Posted by calvintaneng > 2016-04-03 16:33 | Report Abuse

Dolphin1 Why must buy expensive stock? Why not choose cheaper 1?
03/04/2016 16:22

calvintaneng answers,

Price is what you pay but value is what you get

SEE

CBIP has a consistent 15% growth yearly while Dolphin is still untested.

CBIP P/E is lower than Dolphin. So CBIP is a more powerful growth stock

MODIPALM Has Already Entrenched Its Position As The Top Palm Oil Mill Manufacturer. So the defensive Moat is hard to assail.

Price is what you pay. But Real Value is What We Want.

CBIP is a Very Valuable Company Going Forward.

POWERED BY EL NINO & LA NINA.

Posted by saschl > 2016-04-03 17:11 | Report Abuse

Mr Calvin, in Eastern Times News (Malaysia Chinese Newspaper), today reports that according to the Chairman of Palm Oil Traders Association, Batu Pahat, due to El Nino, Oil Palm harvest has dropped by 50% and Plam oil extraction ratio has dropped from 20% to 18%, do you think it is necessary to reevaluate your current very positive optimism about the effects of high CPO price to all the Oil Palm counters? Thkq!

Posted by calvintaneng > 2016-04-03 18:05 | Report Abuse

saschl

Mr Calvin, in Eastern Times News (Malaysia Chinese Newspaper), today reports that according to the Chairman of Palm Oil Traders Association, Batu Pahat, due to El Nino, Oil Palm harvest has dropped by 50% and Plam oil extraction ratio has dropped from 20% to 18%, do you think it is necessary to reevaluate your current very positive optimism about the effects of high CPO price to all the Oil Palm counters? Thkq!
03/04/2016 17:11

Calvin answers,

My position is as fixed as Mt Gunung Tahan.

I already know that in early months of 2016 FFB harvest will drop a lot. But towards the 2nd half of 2016 there will be bountiful harvest of FFB to compensate for those bleak months.

Note:

If you can see 60 foot oil palm suffer losses then what happens to maize, corn, soy and sun flower?

Don't you think they got wipe off totally?

Posted by saschl > 2016-04-03 18:10 | Report Abuse

Mr Calvin, Ok Thkq I know what u mean, as I've limited resources, I'll go for JTiasa (in Sarawak, as 3 qtrs of Swk is not affected by El Niño) and CBIP, hope I have made the correct choice!

Posted by calvintaneng > 2016-04-03 18:20 | Report Abuse

Posted by saschl > Apr 3, 2016 06:10 PM | Report Abuse

Mr Calvin, Ok Thkq I know what u mean, as I've limited resources, I'll go for JTiasa (in Sarawak, as 3 qtrs of Swk is not affected by El Niño) and CBIP, hope I have made the correct choice!

Calvin thinks if you can just sit tight with these 2 stocks you will do Very Well in coming months till end of 2017. By End 2017 or early 2018 when the Market is going mad over all Oil Palm stocks you can slowly sell into strength for at least 50% to 100% profit.

I wish all at i3 Forum who follow this Uptrend of CPO prosper immensely.

Posted by saschl > 2016-04-03 18:49 | Report Abuse

Calvin, once again Thkq!

Posted by JT Yeo > 2016-04-03 19:24 | Report Abuse

I still hold my view that CBIP moving into plantation is not the best strategy, unless they have great justification for taking the cash they generated from palm oil mill and throw it to a commodity sector that generate dismal ROE

Posted by calvintaneng > 2016-04-03 20:03 | Report Abuse

Posted by JT Yeo > Apr 3, 2016 07:24 PM | Report Abuse

I still hold my view that CBIP moving into plantation is not the best strategy, unless they have great justification for taking the cash they generated from palm oil mill and throw it to a commodity sector that generate dismal ROE


Calvin says,
I think the best would be returning cash as higher dividend to shareholders.
Since they put into into Oil Palm cultivation they are still within similar industry, so should be ok.

It is better than those that diversify into completely different industries they are not competent in - say Oil and Gas?

Posted by tonylim > 2016-04-03 21:15 | Report Abuse

Top glove use their cash to buy into real estate
I would do that too

Posted by chl1989 > 2016-04-05 01:19 | Report Abuse

Indeed a very solid stock, good div yield, healthy cash flow and balance sheet plus its outstandingly high roic (>30%). However, looking at its Ebit/EV (~12%), it seems like it is no longer dirt cheap. Based on dcf, at the current price, market is expecting it to grow by 15% for the next 5 years, 5% for another five years then 3% for the rest of the business life. Not sure how well they can outperform the expectation. Any advice from sifu ben?