Today's selling because many people in certain traders group is following blindly.. when their so called guru ask to sell, they will sell regardless, and when price moves downwards, some get even more desperate and this descends into panic sell, which they may regret tomorrow.
With its young average tree profile of 7 years whereby 77% of planted area is below 8 years old, we are eyeing solid growth for THPLANT in 2017 onwards till end of 2018. That's the reason we looked into this counter now even though we've found the low share price relative to its business fundamentals in the past 1 year. We've peers in portfolio management industry looking at it for a longer term play. But I've been told that they will increase stakes after results announcements in 2017. Sometimes it's not just about being contrarian, but about being much earlier than anyone else to discover, strategize and invest in companies. Good luck!
i am moving away from Steel, Tin stocks, O&G and focusing on plantation now... why?
(1) the world population will continuously expand and demand for this cheapest cooking oil will always be there...the palm oil smear campaign had lost its arguments and people are realizing its even better oil than soybean oil...the price will soon be comparable to soybean's price.
(2) the land that had been relentless cleared in east malaysia and indonesia had come to a saturation point for planting further palm trees...meaning supply source is slowly becoming limited.
(3) you cannot find cheap land anymore....if you want to buy land for personal plantation purpose..i bet cannot find it cheaper than RM70K per hectare...look at thee price these companies are selling.
(4) O&G has huge upper limit on the price of Crude Oil (due to shale oil) just like palm oil has lower limit on its price due to biodiesel..
(5) Unlike all these steel companies, where they are dependent on raw material price, tariffs and selling prices...plantation's only major costs is free...the sunlight & natural minerals found from the soil and decomposing organic material of dead trees... Its like your costs are almost free..
even the laborers are being helped by machines which can harvest fruits from the trees...its just a matter of time - cheap robots will be introduced to harvest the fruits - they will work day and night for free with the fuel provided by Biodiesel from palm oil itself. If Japanese were ruling malaysia...this robots would have been here by now.
very soon one will never be able to afford to buy any land for their own..
PLANTATIONS IS THE ULTIMATE INVESTMENT for MALAYSIANS.. never lose your market share on this land bank. Price will only go up from now.....no returning back.
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jacklintan
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Posted by jacklintan > 2016-11-28 14:40 | Report Abuse
good Qr! bravo