Don't be silly to mislead the members here, you don't know why government asking citizens to buy more food to keep as storage because of strong winter season, not because of high demand of palm oil
WTK small profit for 3Q21 is nothing to shout about. The 3 divisions plantation, manufacturing and trading made barely enough to offset losses in timber division. The company's businesses need overhauling and unproductive assets put to good use. Otherwise WTK will just limp along with its best days long past.
contribution from oil palm plantation segment is too small to make a different. I wonder why the timber business has been bleeding for years and yet Management hasn't done anything about it.
U see why plantation is the best safe value investment leh ?!
Why leh ??
1. It is traded at attractive price with big discount & margin of safety mah!
2. Plantation land are good hedge of inflation loh!
3. Plantation generate good steady cash flow & earned big forex for the country mah!
4. Plantation give food to the people, thus is a very essential economic sector loh!
5. Plantation are not affected by the risk of very fast technology changes that will make the industry obsolete and disrupt the prospect...This plantaion industry & predictable mah!
6. If u believe long term sustainable cash generating business go for plantation loh!
Posted by NorazmiAR > Jan 6, 2022 1:38 PM | Report Abuse
Why investors cannot see the bumper profit for BPlant at current high CPO price RM5300/tonne at almost all time high? Share price is not reflecting the fundamental of this company potential!!
Why Investors cannot see?
Answer:
Constant harping by Many Dirty IB Bankers (Hong Leong Research excepted as it is speaking the truth. HL Research is for palm oil)
Many Dirty IB Bankers issued too many Palm oil call warrants to BET AGAINST PALM OIL
As such they kept downgrading and downgrading palm oil all throughout 2021
In cahoot with these Dirty IB Bankers the Media published lopsided projections that Cpo prices cannot sustain and will fall back (Which is now found to be A BIG LIE)
And use the fake ESG concern against palm oil
So the Masses are drugged by Dirty Ib Bankers & Dirty Media to avoid palm oil shares
This is why the General Market players always ended up losing money in the Stock market year after year (90% of Punters/Traders confirmed losing money. Blame the Dirty IB Bankers & the Dirty Media)
Now you must do independent study if you want to succeed and do well in the Stock market as only the rare 10% will eventually make money
2. scenery Con liar stockraider aka whistlebower99 aka thehoff spamming all penny stocks here n in FB GorengGroupFB. He non stop since early 2021 days n nights, working very hard for syndicates to collect at low n causes all penny stock lost above 5,000% - 10,000%
WTK has 12k hectares of plantation. Their palm oil mill is also quite efficient with an OER of 21.7% - 22.5% and PKER of 5.1%. Plus they have a net cash backing of 25sen/share. So essentially you are paying 28sen for WTK at today's prices.
Big brother JTiasa announced decent results for the quarter with plantations division the main contributor with timber/plywood almost breaking even. Now awaiting WTK's results. If it mirrors JTiasa, it can make enough in 4Q2021 to become profitable for the year. The key is in turning round timber/plywood since the other divisions are profitable.
WTK has very little exposure in oil palm. Better switch out to many other plantation counters which are still very cheap like Bplant, MHC, Cepat, Taann, SOP, swkplant, Hsplant. MKH , a housing developer has much bigger exposure in oil palm with about 17,000 ha very high yielding mature oil palm in kalimatan. Very significant contribution from oil palm segment while housing segment is improving.
WTK was late diversifying into oil palm, unlike JTiasa, as it was troubled by internal shareholder squabbles. But 12k hectares of mainly young trees ain't bad and cushions weak timber/plywood performance. As does its increasing cash hoard RM386m since operations are cash flow positive. Gives ammunition to buy more plantation land when available. Nice touch to increase dividend to 1.5% but investors need more patience to reap good harvest.
Wtk has un polished gems the forest harvest its due to collect. When trees fall turn into logs sales waiting for this. Plywood Japan n Taiwan. Logs sale india
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....
Intrinsic99
267 posts
Posted by Intrinsic99 > 2021-11-10 08:58 | Report Abuse
No need to raise flag, you more raise up the more admitted what I said is correct
You are trying cash out what you did the mistake that's why keep on promoting