Common sense... When the price almost hit new low on every week with high volume.... That tell you the worst is yet to come... Red report card is coming....industry Insider sold first
Cold eye admitted Palm oil sector is entering prolong bear cycle and not suitable for investment consideration.. Simply too early... No-one could predict when will hit the bottom
Hope for CPO to recover soon. All old trees should be chopped down for replanting now. Many plantation companies did that during the last CPO bear market.
Although the company is under value at current price ranges, i noticed jayatiasa is not yield efficient as against other planters.
Take for instance, the total planted area has reached 69K hectar with average trees aging at 9 years but barely making small money in last quarter financial result as against the similar peer TSH With similar aging tree profile.
TSH just planted 42K hectar but making great money as against jayatiasa for the same corresponding period. The industry insider said the Operating efficiency for TSH is 23MT per hectar as against 19MT.
All these information derived from the annual report and quarterly report.
If you believe in palm oil future, jayatiasa is not a best bet. Thus, the company hardly making good return to the shareholder for the past 5 years as against it similar peers in the industry.
Anyone who invested in the past 5 years can confirm my observation... Koon yew yin invested since 2013....losing big money.
Fong siling invested since 2017 must be carried paper loss at least 50% based on rm0. 50 cent today!!!
Taan have got exactly similar structure like jayatiasa but making great return in both timber and palm oil businesses as against jayatiasa.
The stock price difference between the two explain the gap as heaven and hell!
If the company can't making money from the active businesses....the minorities shareholder will be at the mercy of the controlling shareholder. Small minorities can't expect concreate return in term of capital gain or dividend but rely on the hope to sell its valuable NTA.
But the ugly reality is the controlling shareholder will do nothing but continue enjoying fat salary packages.
Year after year.... Oppourtunity cost incurred... Small minorities continued its daydreaming..
The explained why KLK, IOI, Genting Plantation, Tsh making good ROE and rewarding the shareholder even though their PE is higher... But making great capital gain for investors.
In essence, making money via under value stock can be only realized if the company is well managed and making operating profit constantly.
Jayatiasa is obviously under value if measure from NTA but not on operating performance.. it won't making you great money
Mr Kasinathan, TSH 42,000 hectares planted correct, but most of their plantation is in indonesia, 24,000 hectares, 59% of their planted oil palm is there. Operation cost in Indonesia and Malaysia there will be different
In my opinion, the selling price for cpo is the same irrespective the location. Hence, jatatiasa inherited with cost disadvantages. I'm also equally worries about the OER, clear cut.... The low yield per hectar can't allow to compete in the industry
However, that's not equal to say you can't make money via jayatiasa. The sentiment of the market and the demand and supply would decide.
What i am suggedting is for the long term investment in the plantation sector, others certainly a better choice. The performance of the past 5 years confirmed that.
It's not essy to make money via this stock when cpo trending downward.
agree with what you say on cpo trending downward, there are also plenty potential plantation counter in indonesia as they are more cost productive compare to us. We will see jaya tiasa FFB production, yield and OER in this year and see their improvement
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....
cpo_king
57 posts
Posted by cpo_king > 2018-12-14 15:36 | Report Abuse
I believe 40 cents is coming soon.