Players capable of spotting the topic or theme.play will be the national top scorers.
There r 2 to 4 cycles p.a. of BIG money on KLSE. In this 1st half of 2022, there were 3. all of them, ev.metal, palm oil n oil refinery themes were GG bcos: their weekly prices, C ; C < ema18 = purebear C < ema42 = big purebear = could take long long time to be played by Mr Mkt again. at best could REBOUND.
PLAY WHAT MR MKT WANTS TO PLAY UP Nobody knows what Mr Mkt wants to play yet in the 2nd half of 2022. Am just too early to guess GLOVE as TG is showing high daily vol consistently. it could not be TECH or what not!
When Mr Mkt shows the THEME, it will be outstanding n majestic,,, always,, we will follow u, Mr Mkt,,
NB: Each theme.play enter at right.timing has potential profit of 40 to 80%. tis the way to CAGR. nobody losses by taking a profit, advised by sir templeton.
The lands that belonged to the company matters. Not only investing in the fruits but the lands as well. Take longer years like one has invested in KLK more than 5 years ago.
Apart from the different type of emphasis periodically on the price of the CPO/profits, the Oil palm companies hold plenty of lands which can bring extraordinary profits. One of the examples, KLK does have lands that are nearby the urbanized area and some lands being used for housing development that gave more income to the company. Also, the lands in the Balance Sheet are more valuable when being revaluated as compared to the book value.
Uncle, Aunty, grandma and grandpa also know lands are valuable assets and it can only appreciate over time. Even after a forest fire or even if after a bomb dropped onto the land, the land will still remain there.
TOP REASONS WHY PALM OIL STOCKS COULD DOWNTURN AND WEAKEN FURTHER
1. High inventory of palm oil stocks. Indonesia will have 10 M tonnes of stocks by end of July. Malaysia took 2 years to reduce inventory from 2 M to 1.5 M tonnes. For a long time, Malaysia has some 10% of its annual production as stocks. Now Indonesia has some 20% as stocks while producing some 4 M tonnes of palm each month. It already happening in Indonesia, when your tanks are full at the mills, the harvesting has to stop. In Malaysia, the inventory stocks are adding some 6% each month. Knowing oil palm, the second half of the year procduces some 60% of the annual crop. 2. There is a significant increase of fertiliser costs in plantations. Plantations use lots of Potash, Nitrates and Phosphates. The costs are already eating into the profits and margins. Most Quarterly results will show increased revenues but net profits remain prosaic. 3. FFB yields per hectare and labour productivity have not increased for the past years in Malaysia. Harvesting, maintenance and transport of produce has remained the same. There is shortage of labour, increased in minimum wages and higher fuel prices. Minimum wage of RM1500 means all maintenance workers cost will rise. Higher palm prices mean harvesters are paid more because they are piece-rated based on palm oil prices.
So, lower palm prices and higher operating costs is the tide you are going to face...
Today crude oil and other commodities green green grass of home. Yeah
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photon
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Posted by photon > 2022-07-24 13:06 | Report Abuse
Cpo going to RM2k soon