RM3.16 target price on April 2022...earnings he forecasted totally missed the mark. After results out I highlighted to sell even at RM0.79 as earnings missed completely, even the most pessimistic earnings call, Calvin said no worry, sure ok one. Well it's now 2.5 months later and it's RM0.63. This is a fact
@skoh888 it's okay, just want to know how you work out the price of ~RM1.00.
Many people speculate different TP, but it doesnt helps at all. since well managed plantation counter KLK TAANN SOP BPLANT price has all retract significant following the downtrend CPO price.
And after staying in the forum for more than a year, its common when Jtiasa price goes up, all those voice bashing Calvin vanish, when price comes down, the teasing and laughing voice return. But it doesnt help at all, just pure emotional revenge on others, lose-lose for all.
Jayatiasa Current Market cap is around 608million, cash 218million , total debt 634mm
Enterprise Value = 608 + 634 - 218 = 1.028Billion
Jayatiasa has 64,022 Hectare (~158,000 acre) of Palm Oil plantation in Prime Age. Assuming their forestry asset, factory etc worth zero. So If a generous investor buy the whole Jayatiasa at 1.2B, he will be paying RM7,600 per acre.
How much is agriculture land selling in Sarawak per acre?
correct, the value of the hectares land is worthless , they can not be turned into developments as easy as you and me thought considering the low density of population , weak purchasing power , remoteness of the areas etc etc . Besides , Sarawak has huge coverage of land with poor infrastructure. Development in the remote areas with extremely population density is not feasible and workable. Basically , its NTA is far fetching which can be ignored
One year ago, the CPO price was in the region of 3800-4000 , one year later which is now , is about RM 4600 . In percentage wise, it is just increased by 22 %. It is projected that the CPO price will continue to fall even below the CPO of one year ago. On this basis, the CF is not going to improve but to exacerbate beyond your imagination and so is the value of the Company.
I dunno where CPO price will be heading, but I dont think it will get back to 2000 unless oil price crash down to 30usd and supply of edible oil goes up. Usually in inflation scenario, dairy stocks will goes up, like canned food, bread, magenrine, butter, biscuitte, which required vegetable oil to process.
even the CPO price goes up, with labour shortage, its still an issue.
India , one of the largest consumers will continue to look for other substitutes cos they consider CPO is too expensive for them, hence it affects the demand . Secondly , Indo, the largest CPO producers will continue to increase their export of CPO ,hence increasing the supply. Thirdly, the cost of living is increasing as a result of inflation. To counter inflation, the interest rate is expected to be increased gradually . Hence demand of CPO is expected to be reduced. With these, the CPO price is expected to fall if not stagnant in months to come ..
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....