Plantation Stock - ????

Posted by 1M168 > 2012-08-15 16:10 | Report Abuse

Wilmar give a good signal for all plantation players... Believe it or not .. Plantation sector should have big adjust ..

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1 comment(s). Last comment by Mat Cendana 2012-08-15 16:19

Mat Cendana

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Posted by Mat Cendana > 2012-08-15 16:19 | Report Abuse

Wilmar most probably has big positions and it hopes investors will help out by supporting the price:-)

At current palm oil prices, these companies aren't going to be able to come up with last year's profits and dividends. Although the results should be okay enough relatively, investors have been spoiled by the performances of the past couple years. They will be disappointed with the reported earnings. Palm oil prices will have to go up; otherwise, these counters will likely go on sliding.

Investors with holding power will have the chance to buy quality counters that give generous dividends. Plantations are cyclical and there will come a time when they will be kings again. But for now the prices will have to come down some more to be attractive enough.

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