Top 10 reasons why Palm oil stocks will go into a bull run
1. China hit by 3 massive typhoons in its North-West. Heilongjiang the bread basket of China has been flooded. It's soybean crops are destroyed
2. As a result China must buy soybean from Usa.
3. Last year China swine fever wiped off many pigs. Soybean is also needed as feedmeal for pigs
3. Us now in drought as soybean production is less.
4. Argentina and Brazil soybean crops won"t be ready until Feb 2021
5. So with increasing demand and dwindling supply soybean prices are rocketing upward
6. Soybean going up will pull up palm oil as their prices are co-related
7. India now will turn to cheaper palm oil as soyoil becomes too expensive
8. Malaysian palm oil stocks are depleting due to lack of Indonesia workers due to mco Again less stock means higher prices
9. Last quarter result of March to May cpo prices were weak. Buy cpo prices have surged from June to August quarters so palm oil stocks are expected to report very good results in Nov 2020
10. Best of the best now in Sept 2020 soybean oil has almost reached Usd35.00 and Cpo future going to cross Rm3,000 barrier
All these converging factors will propel palm oil stocks into bull run just like coronavirus powered up medical gloves
Buy early before others are aware
Bplant Wtk Jtiasa Tdm Mhc Cepat Hs plant Chinteck if you can hold longer term
Because if soybean price is up it will be more expensive for soy oil
And India cannot afford to buy expensive soybean oil will then buy the cheaper palm oil
And if demand for palm oil goes up so will be its selling prices
That is why China after 5 typhoon got to buy up all corn and soybean from world markets in panic
This will last for at least 6 months till next soybean harvests from Argentina and Brazil in the southern hemisphere while the North is going into winter months
And then palm oil will reign as king as there is no competing vege oil around
Palm oil stocks will go into a 6 months Bull run from now
It might turn into a Superbull if Both Argentina and Brazil soyoil crops fail due to drought
So just buy and hold all palm oil stocks for at least 3 to 6 months
This is a sure fire winner for holding precious palm oil shares now.
Hap Seng Consolidated bought HSPlant 66mil shares @ 1.65 causing public spread gone down to 23.63%. Now, they need to make it back to 25% to comply with bursa's public spread requirement by selling 11mil shares away. The show on HSplant share price can only be start after this was done, although CPO has reached Rm3100 now and most of Plantation counters has surge
The year was 1996. The Asian Stock Markets Were in the Hottest Euphoria. Amost every one was enjoying increasing profits. Many have resigned from their jobs to do full time trading in the stock market. Stock market tips and conversations were the order of the day. Everywhere in offices, homes, coffee shops, markets, eating places people talked only about the next “Limit Up” stocks.
In every trading Hall or Room there is no available seats. In RHB Bank HQ there isn’t even standing room. Cramped, jammed and packed with traders and specualtors from all walks of life. It Was The GoGo Years Before The Asian Financial Crisis!
One man stood out. Peter Lim of Singapore. He sold all his shares near the very peak and bought into just one counter – WILMAR the Plantation Stock.
On hindsight it was an uncanny but very accurate move. Next year in July 2nd 1997 George Soros attacked the Thai bath. The Thai bath collapsed and then contagion spread to Malaysia, Singapore, Hk, Korea, Indonesia – One by One Their Stock Markets Collapsed like tent pins.
At the height KLSE was 1332 and at the bottom it was only 262 points – A Crash of 81%
Nobody fully invested could have escaped such a carnage. It was a disaster for many. Tens of thousands went bankrupt. Many Banks & Financial Institutions were insolvent. Before the Asian Financial Crisis there were 49 Banks and Credit Companies in Malaysia. With the devastating carnage less than 10 Banks now standing. The rest became history.
Tycoon Peter Lim invested $10 millions into Wilmar – the plantation stock owned by Robert Kuok.
How come Peter was so “chun chun”? All $10 millions into one single stock. And he was right on target. Four years later in 2,000 Peter Lim “THE REMISIER KING” of Singapore sold his Wilmar shares for a cool $1.5 Billions!
So plantation stock investment if timed well can make you a billionaire!
As for Robert Kuok he became the Richest Man No. One in All of Malaysia with over Rm40 Billions.
Ha! Are we now entering another phase of market doom? Maybe yes or maybe no.
But This Is For Sure:
A POWERFUL EL NINO IS NOW ONGOING
Hmmm?
Let’s SEE if Plantation Stocks will create more millionaires and billionaires this round.
Posted by kelvin61 > Dec 10, 2020 7:48 AM | Report Abuse
Most traders have neglected the super bull run on CPO prices that will bring windfall profits to the Plantation companies. There are still many selling for a song, cheers.
CORRECT!!
FCPO CLOSED AT ABOVE RM3600 MEANS MORE THAN 100% PROFIT FOR ALL PALM OIL COMPANIES
FEB 2021 FANTASTIC RESULTS FOR ALL PALM OIL STOCKS WILL REGISTER HUGE PROFITS
WHY?
ANSWER:
OCTOBER, NOVEMBER & UNTIL DEC 10TH NOW CPO HAS FCPO HAS BEEN HOLDING FIRMLY ABOVE RM3400 TO RM3600
Let's calculate the Feb 2021 figure
October 30 days
November 30 days
December 31 days
Total days of last quarter for 2020 is 91 days
Today is 10th day of Dec
So 2 months & 10 days = 70 days
70/91 = 76.9% of the Feb 2021 results will reflect These Very High Profit months
Even if production of FFB decrease by 10% to 15% the Huge Increase in CPO prices over ride all to Excel
Parent company may have completed the sell down after just meeting the 25% public spread. Super dividend stock in the years when CPO did well. Very transparent company who stick to 60% dividend payout policy.
It has a dividend policy of minimum 60% payout. For many years, the management comply. Estimated EPS FY 2020 is 12 -14 sen. Expect dividend is then is 7-8 sen.. In 2011 where avg CPO was $3,400, it earned about 32 sen and paid 20 sen dividend. FY2021 shall be a repeat of 2011. Controlling shareholders have sold down enough to meet the 25% public spread.
Palm oil has been at the centre of a dispute between the EU and Malaysia, as the regional bloc has moved to restrict edible oil in biodiesel.Under the Renewable Energy Directive (RED) II, palm oil has been classified as a high indirect land-use change product that raises its greenhouse gas emissions to unacceptable levels. It will be gradually phased out of the bloc’s renewable energy mix by 2030.
Wonder what analysts will said... they been bearish on the CPO price since CPO traded above Rm3500. Most reports said CPO price cannot last, will pull back since 3Q2020, the fact now is CPO still stay above Rm4000... CPO for 2Q2021 still holding >4k...
LIST OF 30 LARGEST SHAREHOLDERS No. Shareholding %(3) 1. Hap Seng Consolidated Berhad 478,911,400 59.89% 2. Innoprise Corporation Sdn Bhd 119,978,000 15.00% 3. Citigroup Nominees (Tempatan) Sdn Bhd - Employees Provident Fund Board 70,758,600 8.85 4. John Chia Sin Tet 8,635,400 1.08% 5. Amanahraya Trustees Berhad- Amanah Saham Malaysia 2 - Wawasan 8,279,900 1.04% 6. Amanahraya Trustees Berhad- Amanah Saham Malaysia 6,112,000 0.76% 7. Chinchoo Investment Sdn. Berhad 5,499,900 0.69% 8. Key Development Sdn. Berhad 4,282,200 0.54% 9. Gan Teng Siew Realty Sdn. Berhad 3,143,066 0.39% 10. HSBC Nominees (Tempatan) Sdn Bhd- Exempt An For Credit Suisse (SG BR-TST-TEMP) 1,593,300 0.20% 11. Mikdavid Sdn Bhd 1,352,000 0.17% 12. Amanahraya Trustees Berhad- Public Islamic Treasures Growth Fund 1,061,700 0.13% 13. CIMB Group Nominees (Tempatan) Sdn Bhd- CIMB Commerce Trustee Berhad for Maybank Malaysia Smallcap Fund 1,000,000 0.13% 14. RHB Capital Nominees (Tempatan) Sdn Bhd- Pledged Securities Account For Fong Siling (CEB) 1,000,000 0.13%
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....
TheSecret
658 posts
Posted by TheSecret > 2020-09-02 19:45 | Report Abuse
https://droughtmonitor.unl.edu/
Usa in drought pushed up soybean oil future above usd30 which will also lift up palm oil prices
China stepping up purchase of US soybean give support
Palm oil stocks low level will later cause demand overtaking supply
Palm oil stocks might then go into bull run time
These can consider
Hs Plant (5138)
Jtiasa
Tdm
Many others all generally good
Buy early before strong bull run starts