But I thing I couldn't understand. Why they continue to sign the contract at very low prices because I think they had months to do the correction since Jan 2021 and until Sep 2021 they are still selling CPO at around RM 3000. Is this incompetency of the management in this area?
I had a feeling the selling price won't go up substantially next quarter. I believe there's something wrong with the method of pricing in the commodity future....
The chances of price going too high is always greater than the chance going too low, I mean in long term. That's because the bottom of the price is somewhat limited by the production cost of the most competitive producers. If these two risks are given equal weights in forming the contract, the shareholders are going to loose big in long term.
@Posted by Sardin > Feb 24, 2022 1:45 PM. They used to sell their po back to their associated company, Aarhus. Not sure still is, but they have secured forward contracts, whether market good or bad.
@sardin All the rich unkers who own this stock dont want it to go up too much too fast ok... Simple reason...
THERE IS NO BETTER STOCK TO OWN!!!!
it goes up means ikan bilis.... n rich unkers dont like panicky ikan bilis.. U r better off buying taann genp n bplant. As for unker sifu.i repeat. I buy and own only klk n utdplnt in plantations...i dont want to sell.. Just enjoy dividend n relax.. a bit lazy..hehe
@sardin Enough of all this over analysis.. U work too much.. Unker sifu help u... Go look up petronm@sardin Looks good for maximum profits.. Looks like share price going up very high after todays good results and dividend..
"Assuming forward sales policy remain the same, I suspect while they lag during the up cycle, they make it back during the down cycle. So on average it may cancel out."
+100
U cannot have your cake and eat it.
U want downside protection on low season, u gotta sacrifice a bit windfall gain on high season.
Hi Pinky, I run a quick check, from 2011 to 2020, average difference is +3.1% but individual year difference could be very big, from -20.4% (2011) to 42.4% (2019).
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....
supersinginvestor
3,369 posts
Posted by supersinginvestor > 2022-02-24 10:07 | Report Abuse
Dam82??
Pinky??
Wats ur call??