“Building long-term wealth is like driving an automobile. If you narrowly focus on the stretch of road a few feet in front of your car, you risk making unnecessary adjustments and over steering. Only when you lift your eyes to focus further down the highway will you successfully reach your destination.”
As I have stated a couple of months ago about the impact on slowdown of the oil palm industry on the company has been reflected in the last quarter results. Low earnings and Turnover will continue to weight on this counter share price, if there is no recovery of the palm oil industry.
alenac Not going anywhere as the Palm oil industry is down and will be down further in second half of this year as more oil seeds plantings are being done in S. America as well as soy market is expected to be soft. 03/04/2013 18:29
gark Another generalization.. people just don't read.
200-300k ha of palm oil planted per year in 2009 till now when the price is good will start to fruit after 3 years. So with all these newly maturing crop, what to do with it? Throw away or buy machine to process them? Your guess....:P 03/04/2013 19:33 X alenac Got your point but there are many suppliers of machines and plants in the market, no need to go to this company. CAPEx spending when the plantation got money if not they send them to 3rd parties mills. 03/04/2013 21:09"
this news have been recycled year after year. usually surfaces when oil palm prices are depressed. many biodiesel plants in lahad datu had even closed shop.
Mbl is sort of oil palm machine seed expeller and inventer of oil seed extracter......it is profitable snd its dividen is good....small paid up.....good for long....
i like MBL but a little worried about their high divvy. too high for a small company like this, will it be sustainable? and the land they bought in Kelantan - just too small to provide meaningful profits. they should spend more on expanding rather than keeping their divvy high.
Well, based on their quarterly and annual reports so far, they are generating more than sufficient cash to pay for the dividends. Their dividends are paid out of free cash flow so it should be sustainable.
Regarding their Kelantan land, I'm assuming this is the plantation they are buying from Sokor Gemilang? Can't remember which is which as they are also buying SPA Hidayah which is involved in logging. Anyway, the plantation land is now facing a hiccup as per their latest Bursa announcement. Something about requiring a 30% bumi equity. Most likely the acquisition will be delayed further or may not go through because of this. Have to continue watching for the news.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
yfchong
5,847 posts
Posted by yfchong > 2013-06-25 11:34 | Report Abuse
Ok lah prepare to store for 6 months.....until better times..