better take profit now before the price drop to 0.80 or below. Due to the lower CPO price, the financial report will have a big drop when compare to last year thus recommend to sell this share now.
2.62 Million tons inventories is a drag of most plantation counters. alternatively look at "incken" counter. rumours of Owners (Ng ah Chai) buying back the cash rich company.
incken hold 230 Million cash after selling 2 parcels of land to UEM. holding 360 acres in Kajang. holding costs extremely low. last valuations done 12-13 years ago.
cpo price at 2.5k pmt is too optimistic. the 2.6 million tonnes excess is just based on storage on port and exporter's tank. they did not consider the every refinery's tank, assume 2k tonnes in every refinery at 300 refineries in malaysia. the figure is huge.
i think, to justify the cpo, the best is below rm 2000 par.
rm1.22 on 20 feb and support 1.08 . since the support broken , this counter coming down like shit till today . its a 1 yr downtrend stock. as long as no signal going uptrend , potentially will going down lower n lower . a simply of my own view. dont believe what i said . thanks
Personally I think if you got holding power...then can accumulate at current price levels. I dont think there is much more downside. Once the CPO stock pile clears...price should improve.
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passerby
2,877 posts
Posted by passerby > 2013-01-08 15:38 | Report Abuse
penny stock, sap sap the water for diablo88, only whether he is willing to take out his rocket launchers to fry or not, correct or not ? :)