Sold all kulim but the next day went up. Buy back at higher price. Kulim is like that, if you don't have any, it will go up. This time will put inside the treasury box and forget about it.
It is very difficult to earn from this counter. The way they control are tactful. Ask people to sell at 3.40 and two days later pushed up to 3.64. Dirty Fox.
patients...this counter will only move when big player buy, like epf, kumpulan wang persaraan & johor corporation... as long as cpo up, they will keep on buying ...slowly...
Kulim's profitability is much depended on the performance of New Britain Palm Oil (NBPOL) which accounted about 60% of its entire turnover. Currently, Kulim holds 48% of ordinary shares in NBPOL.
When reviewing the performance of past 2 quarters, we understand that NBPOL was actually entered a forward contract to fixed the CPO prices for immediate next quarter. I would expect the performance of 1st quarter 2014 would be much better than the last quarter given forward contract CPO prices in the end of 3rd quarter was lower comparing with 4th quarter or about 8%.
Here's the extract notes from New Britain Palm Oil ( NBPOL's)'s quarterly announcement in year 2013:
3rd quarter 2013 reports:
" As at the end of September, the Group had 38,500 tonnes of CPO sold or priced forward into the fourth quarter at an average price of USD 853 per tonne. We are continuing with our established forward selling strategy where we believe it can deliver the best prices for the Group and have since added 29,000 tonnes at an average price of USD 886 per tonne, as well as 35,000 tonnes into 2014 at USD 905 per tonne."
4th quarter 2013 reports:
" As at the year end, the Group had made forward sales of CPO of approximately 76,000 tonnes of its 2014 production at an average price of USD 922/tonne; as at 21 February 2014 the forward sales of CPO of the Group were approximately 121,000 tonnes at an average price of USD 927/tonne "
I don't know the share price movement. If you look at Kulim's announcement of 4th quarter 2013 results under segmental information, NBPOL was actually suffered minor loss about RM 4 million back with RM 407 million turnover. I would expect NBPOL will contribute profit in coming quarter as CPO prices had been riding high recently.
NBPOL is a large scale integrated industrial producer of sustainable palm oil in Australasia, headquartered in Papua New Guinea (PNG). It has over 78,000 hectares of planted oil palm estates, over 7,700 hectares of sugar cane and a further 9,200 hectares of grazing pasture; twelve oil mills; two refineries, one in PNG, and one in Liverpool, UK; and a seed production and plant breeding facility. The Company is listed on both the Main Market of the London Stock Exchange and on the Port Moresby Stock Exchange in PNG.
NBPOL is fully vertically integrated, producing its own seed (which it also sells globally), planting, cultivating and harvesting its own land, and processing and refining palm oil (both in PNG and the UK). It also contracts directly with its end customers in the EU and arranges shipping of its products.
NBPOL has high regard for the importance of its sustainability credentials and is active in proving its performance through its certification to ISO 14001 and its close involvement and support of the Roundtable on Sustainable Palm Oil ("RSPO"). The Company is a certified supplier of sustainable palm oil from its entire production base in PNG and Solomon Islands, under the RSPO guidelines.
A part from improving in operation results of NBPOL, I would expect a foreign exchange gain in foreign currency loan given PNG-KINA against USD has been appreciated about 5% since 31 Dec 2013.
In fact, NBPOL was suffered loss in foreign exchange due to weakening PNG-KINA.
Extracted:
" Net Foreign Exchange Loss
The lower PGK-USD exchange rate has resulted in year to date currency losses of USD 24.9 million as compared to USD 12.0 million of currency gains in the same period last year.
The year to date net foreign exchange losses reported are comprised primarily of non-cash currency adjustments on the Group's US Dollar denominated loans. "
kulim, you are another missing plane, kepala pusing ? shares cannot go up everyday as well as cannot go down everyday but kulim you can. I am waiting for you at 3.10.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 4005 views | 4 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
Beginner1989
822 posts
Posted by Beginner1989 > 2014-03-07 16:15 | Report Abuse
argh...if it could close at 3.65.. how good it is..