CPO futures plunge to five-year low Fri, 15 Aug 01:50
KUALA LUMPUR: Crude palm oil (CPO) futures prices on Bursa Malaysia Derivatives plunged to five-year low tracking huge losses on Chicago soyabean oil.
Phillip Futures specialist, David Ng, said the difference between the palm oil and soya oil prices has narrowed and this aggravated selling pressure in light of current prevailing pessimism in the market.
Both spot month August 2014 and September 2014 eased RM49 each to RM2,166 and RM2,150 a tonne, respectively, while October 2014 declined RM43 to RM2,133 a tonne and November shed RM41 to RM2,134 a tonne.
Volume rose to 43,351 lots from 40,012 lots previously while open interest fell 205,054 contracts from 278,831 previously.
On the physical market, August South slipped RM2,160 a tonne from RM2,240 on Wednesday. Bernama
In North Dakota USA there is A New Discovery of Oil Fracking. This method of Oil Extraction is causing a Big Boom in Oil Surplus for USA. As a result USA is now exporting Crude Oil.
And Crude Oil Prices are dropping. This will impact on Vegetable Oil like Corn Oil And Palm Oil. Since Palm Oil & Corn Oil are also used as Biodiesel. Biodisel price drop due to Crude Oil Price Drop will Drag Down Palm Oil Prices. So plantation stocks should be avoided for the time being.
unlike most other plantation companies, Bplant is not a pure plantation play, it is also an asset play.
did you read the detailed Maybank research report? Go read it and you noticed several precious landbanks Bplant is holding, which are ripe for converting from plantation land to residential land.
"Maybank IB Research, which has a ‘buy’ rating on BPB, said in a report last Thursday that the company’s share price downside is supported by its RM3.08 per share real net asset value, backed by its strategic land that has development potential."
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....
speakup
27,298 posts
Posted by speakup > 2014-08-14 09:34 | Report Abuse
A good example of Asset play : http://www.kinibiz.com/story/tigertalk/101660/is-revised-offer-for-delloyd-ventures-still-too-low.html
Delloyd is a auto parts company + asset play
Bplant is a plantation company + asset play