The most safe palm stock is CEPAT. QR Out ady. Palm oil price keep up. August is coming.. Traders will not miss this boat for palm oil stock rally. They will not risky their money in others palm oil stock bcoz august QR is coming but not CEPAT!
Overall, the output of most palm oil companies has increased, especially in Indonesia, but analysts still expect palm oil prices this year to be 13% higher than last year."Assuming that the price of palm oil is 2500 ringgit per metric ton, the profitability of palm oil industry will grow strongly year-on-year this year and next."
"Smaller planting companies have benefited from the recent increase in palm oil prices and their valuations are still relatively good."
As US dollar index is continue facing pressure and dip to 92.69 now, this will bold well for all the commodities price; CPO price will be one of them. During MCO period, almost all sectors were badly affected, plantation sector is one of the exceptional beside glove & healtcare sectors! look at plantation companies that posted increase earning recently (CEPAT, KMLOONG,TSH, BKWAN, SWKPLNT etc) then we know plantation sector are under recovery due to restocking activities and recovery growth from China & India.
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
Better Performance With Additional Replanted Areas Come Into Maturity
The net profit of CEPAT in last quarter was RM4.462 Million (EPS = 1.44 sen). If this set of good earning can be sustained and further improved?? Look at what the company wrote in it quarterly report:
Commentary on prospects =======================
“Palm oil prices have seen some recovery recently since the outbreak of the COVID-19 pandemic due to ongoing restocking activities and recovery growth in China. However the COVID-19 pandemic continues to exert its negative impact on palm oil demand and prices. Notwithstanding this challenging economic outlook, the Group remains prudent and focused on enhancing its operational efficiency. THE GROUP ANTICIPATES A BETTER PERFORMANCE FOR THE REMAINING PERIOD OF THE YEAR WITH ADDITIONAL REPLANTED AREAS COMING INTO MATURITY.”
=> From the statements above, we can see CEPAT management is giving investors with very clear guidance on it future earning prospect! Hard to find management who willing to give such clear guidance to investors.
=>With Q2 FY2020 (Apr-June) EPS : 1.44 sen (RM4.46 Mil), we just simply annualize it become 5.76 sen (without consider the increase of net profit due to output increase and better CPO price)
With PE of 15: CEPAT worth at least 86 sen!!
Monthly Fresh Fruit Brunches (FFB) For CEPAT & Average CPO price in Malaysia:
Note: From the FFB figure which increasing sharply started from Apr to Aug, this is tally with the guidance from management => Better Performance With Additional Replanted Areas Come Into Maturity! Average CPO price at July & Aug higher Apr-Jun, Thus, Q3 coming quarter earning will be simply higher than Q2.
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.
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.
Better Performance With Additional Replanted Areas Come Into Maturity
The net profit of CEPAT in last quarter was RM4.462 Million (EPS = 1.44 sen). If this set of good earning can be sustained and further improved?? Look at what the company wrote in it quarterly report:
Commentary on prospects ==================
“Palm oil prices have seen some recovery recently since the outbreak of the COVID-19 pandemic due to ongoing restocking activities and recovery growth in China. However the COVID-19 pandemic continues to exert its negative impact on palm oil demand and prices. Notwithstanding this challenging economic outlook, the Group remains prudent and focused on enhancing its operational efficiency. THE GROUP ANTICIPATES A BETTER PERFORMANCE FOR THE REMAINING PERIOD OF THE YEAR WITH ADDITIONAL REPLANTED AREAS COMING INTO MATURITY.”
=> From the statements above, we can see CEPAT management is giving investors with very clear guidance on it future earning prospect! Hard to find management who willing to give such clear guidance to investors.
=>With Q2 FY2020 EPS : 1.44 sen, we just simply annualized it and become 5.76 sen (without consider the increase of net profit due to output increase and better CPO price)
Q3 FY2020 EPS (Jul to Sep):?? Forecast 20% increase from Q2 => 1.73 sen
With PE of 15: CEPAT worth at least 86 sen!!
Monthly Fresh Fruit Brunches (FFB) For CEPAT & Average CPO price in Malaysia:
FCPO is going to test next multi year high at around 3450-3500 region.. with persistent draught ongoing South America that affect yield in soy bean production, and with dwindling stock level, palm oil fundamental going for next 2 Q should be good.. bare in mind crude oil is also rising.. Soybean up, Crude oil up , USD Down . it will be triple catalyst to push the palm oil price higher further.. The stock is still so undervalue now..
New IPO: Carlo Rino Group Berhad, a leading fashion retailer of women’s handbags, footwear, and accessories, aims to list on the ACE Market!
MQ Trader 124 views | 22 h ago
0:17
New IPO: A homegrown air fragrance company, Vanzo Holdings Berhad aims to list on the Ace Market!
MQ Trader 233 views | 1 d ago
0:17
New IPO: Winstar Capital Berhad, a specialist in the extrusion of aluminium profiles and fabrication of aluminium ladders aims to list on the ACE Market!
MQ Trader 403 views | 2 d ago
0:17
New IPO: Topvision Eye Specialist Berhad, specializing in medical eye care services aims to list on the ACE Market!
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....
EngineeringProfit
20,595 posts
Posted by EngineeringProfit > 2020-07-22 18:09 | Report Abuse
huat ar. I'm back