Better to consider reduce holding for short term investor. This case will not able to close so easily and probably to be a lesson learn signal to others.
Food for thought: assuming that fair price was rm 5, then due to rspo suspension for the 2% of ioi's total production of Palm oil the share price fell more then 10% ; <4.50. But the suspension of rspo is supposedly according to the ioi only supposed to influence 5% of the net profit, so shouldn't the fair value be at rm 4.75, theoretically ? Feedback would be much appreciated, thanks.
RSPO will be resolve as it is matter of compliance, IOI will rectify it and reinstate the RSPO later. IOI is one of the founder of RSPO, and IOI is big cap stock, major shareholder will be more concern than us to rectify RSPO as fast as possible
The higher impact factors on IOI earning are actually Strengthen RM which alrdy at 3.86 and surging in CPO selling price. IOI will benefit from its high USD denominated debt saving cost, reap forex gain, increase its profit margin. higher CPO price which alrdy at record high 2760, will have direct positive impact on IOI bottomline, increase its profitability.
hng33 definitely should not be afraid bcoz he is not a long term shareholder. His style is hit and run. Buy at 4.50 sell at 4.55. Then repeat.. Same everywhere he appears such as POS counter where he bought around 2.40 and sold at 2.70 though he should have waited until 3.07 on that day.. A few sen here and there.. Ops.. Friendly fire bro.. Dont get angry.. Hehe
You never know what is the highest share price will be....likewise, you never know what is lowest price will be....as share price is dynamic...tend to overshoot....But, what i will do is buy on weakness, sell back on strength to reap profit...i can have multiple entry and exit in a day and repeat multiple day,even a month, so long it is winner stock, it can give multiple time of profit and rolling it to compound. I have multiple stock under selection and radar screen and all ready to swap and profiting.
From TheEdge today, "IOI's RSPO cert suspension has far reaching impact". .... one of its key customers, Unilever has announced that it is in the process of disengaging from IOI group .....
Well there is strong volume and news are rumors until something actually materializes, I have faith in Ioi that as amazing business people they would not let go of their customers.
It is true the situation would be rectified. But if RSPO council make an exception of them or just give them a slap on the wrist, RSPO would lose their own credibility. Everybody could burn n rectify later.
Three of the world's top food and consumer goods companies that make Dove soap, M&M's and Kellogg's Corn Flakes have dropped a leading Malaysian palm oil producer because of deforestation in its plantations in Indonesia.
I hope this stock and company continue to get punished for its unethical practices and destroying the health of millions of people in the process. If you can, take your money and run. Things are not going to get any better, as more and more companies decide to offload. It will continue on a downward spiral, Its a dead man walking.
Buy back does not mean business stability or stock stability, in fact it can compound the downward trend, this stock will continue to drop and drop and drop and a buy back can not prevent it. Their contracts will continue to bleed, results will suffer, the stock will get re-rated to thrash. Take your money and run.
Three of the world's top food and consumer goods companies that make Dove soap, M&M's and Kellogg's Corn Flakes have dropped a leading Malaysian palm oil producer because of deforestation in its plantations in Indonesia.
Unilever, which owns over 400 brands including Dove, announced last week that it has begun cancelling its supplier agreements with palm oil producer and trader IOI Group over evidence of bad environmental practices in Indonesia.
IOI is Malaysia's No. 2 palm oil company by production and a top 10-listed global palm oil firm. Unilever is one of the world's top buyers of palm and palm kernel oil and refined products.
United States food giants Mars and Kellogg's have also announced that they are in the process of removing IOI as a supplier by progressively dropping contracts with IOI's refining subsidiary IOI Loders Croklaan, which has refineries in Malaysia and Holland.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
surewinz
1,014 posts
Posted by surewinz > 2016-04-04 10:55 | Report Abuse
TR coming?