RHB analyst might be sweating again on the wrong reading. Some points to consider:
- Market is flushed with extra 10mil+ from ESOS. - When fcpo traded at 5.2k range at late Jan 2022, SOP still in sleeping mode and traded 3.5 range - fcpo was in uptrend back in January, but now is gap down and bearish under 200MA. - sbo and soybean future all both in downward trend / gap down.
Average price for SOP in 2022 should exceed RM5K EPS should be around RM1. Going forward into 2023 CPO price will dip to RM4500 and SOP should still enjoy single digit PE for the next 3 yrs so do not worry la bro but I do really hope a higher dividend would be forthcoming
I really donno how many esos shares excercised, listed but still not sold yet. When the cheap esos shares have dried up then probably it can move up bcoz SOP is the cheapest plantation stock in bursa now
Plantations especially oil palm are cyclical. It is indeed a good defensive stocks to keep when the market turns ugly. Stock selection is the key word. Among the oil palm plantations SOP is one of the best choice but unfortunately when big funds see the Co. CEO has been selling his company shares agressively bcoz of large qty of esos he was given it does not give confidence to investors and compounded by low dividend yield this stock has not attracted big fund to come in a big way. Having said that when the price is closer to the esos excercise price it is definitely a good pick.
Latest div only 6 sen. Wish management is generous with div instead of ESOS. Bonus will dilute the EPS. CPO price under pressure currently coupled with increasing operating cost. Sorry to sound pessimistic but cannot see how SOP is attractive at this level.
It does not really make sense when Sime Plant whose earnings is not even 60% of SOP but command a share price equal to that of SOP and a host of other plantations command a much higher PE than SOP something is not right lah
SOP is mispriced by the market Even insider director decides to exercise lots of esos in a time of bad sentiment and falling prices to pick up coming free bonus one for two now already approved by vote in Agm
Although SOP is now the cheapest plantation stocks in bursa investors are still reluctant to but big bcoz this is one of the few stocks that offer large amount of esos to its owners (directors) and execs instead of rewarding the minority shareholders with higher cash dividends. Consequently we see only some retail investors and the manipulators and perhaps their own gang are there, and each day you see the stocks closed even lower. Having said that I would encourage investors to pick up some at this price level as the ex bonus price would become only around 2.80 which I think is cheap enough in spite of all the negative elements surrounding this stock
The only yardstick to measure ur risk be4 buying SOP is to know when its price has tanked! With flurries of sellings by their directors due t ESOS i m doubtful if new investors will put their here n if, u buys high could u wen recover ur paper loses !
Here are some simple maths, if they maintain the same div payout you are actually getting 50% more after the 1 for 2 bonus and if they decide to increase the quantum you are getting an extra bonus. If SOP is devoid of all the negative element mentioned it could easily command a price of above 4.00 after the bonus issue. I am not a hardcore promoter but I can condidently say if SOP does not do well no other plantation stocks will. Still I don't rule out the possibilities of it going down a little as there were some esos with an excercise price of 2.21 just listed and of course some interested parties at play too
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