when cpo hit 2700 , i think most plantation stocks will join the party. Better to accumulate @ 70+ cts to enjoy a bigger profit when it hit a dollar. Rotational play is the norm of the day....my fren
yaloh what are they really thinking ha?give u 10 ringgit and still need to wait for 4 months.is this considered good management ?they really think shareholders are beggar meh ooooooooi.
This is the cheapest plantation stock with great potential. kcchongnz, with due respect, that's my personal opinion. The other one I would recommend is TSH.
crawler, how do you define the cheapest? Based on earnings or NTA? Tell us what is Rsawit's earnings for last financial year, and also the latest quarter. What is its NTA? Or how much plantation land it has and what is its market value?
Similarly for TSH. How do you define cheapness? PE ration, Enterprise value over its EBITDA? How is it compared to say TDM, SOP two of my favorite plantation companies?
These are also my personal opinion also and which may not be right too. for all I know many analysts strongly recommend TSH. but I don't buy it.
Well we can discuss all these right here with our analysis, not just feeling.
Rsawit has been making losses for the last two quarters. Where got palm oil company losing money one when CPO is 2300+ per ton when the cost of production is what? 1200? So where is the beef? In the future? When future? Rsawit better earn money now, right now. If not how are you going to pay your interest of your huge amount of loan of 400m besides needing money to run your business?
from the outlook it may not look profitable due to replanting. Trees don't grow overnight my friend. The cost of re-planting + low production due to old trees+ high fertilizer cost. This will break-even eventually. Importantly the land will increase in value over time. it is cheap based on NTA.
I only have simple criteria for choosing plantation. High ffb per ha High oer per ton ffb Average tree age below 7 years old Still have at least 30 pct reserve land Reasonable debt, pe, fcf, pbv
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....
jacko
560 posts
Posted by jacko > 2013-03-27 09:35 | Report Abuse
Lai Liao lai Liao......will drop again in fat noon if the no midday announcement!