Dear Fellow Investors of i3 Forum,
Calvin has been watching very closely Palm Oil Stocks for more than 2 years now. And I think the time for Palm OIl & CPO stocks to perform has arrived:
And these are the TOP 10 REASONS for BUYING PALM OIL STOCKS:
1) PRICES UP 20% TO 25% SINCE YEAR 2015
I spoke to one Johor Buddy named K.E. Tan who owned Palm Oil Plantations in Johor.
He said that last year FFB (Fresh Fruit Bunches) was going for Rm400 a ton. This year January 2017 it went up to a high of Rm580 a ton. Now it hovers around at Rm500 a ton. So prices have gone up by 20% to 25%.
2) HIGH PROFIT MARGIN AT CURRENT CPO PRICES OF RM2,500 TO RM2,600 A TONNE.
Let me quote a fellow i3 Forum Investor's words here:
My job for 30 years is closed linked to palm oil.
What business give almost 50% Gross Margin ??
Chongyo has 30 years experience in palm oil. And he stated that Palm oil current gross margin is 50%. This is better than most construction stocks or property stocks
3) WHILE CPO SURPLUS STOCKS HAVE DECREASED PRODUCTION OF FFB HAS INCREASED BY 30%
This double blessing of rising prices Plus Rising Fruit Yield is now a Double Blessing for all Oil Palm Owners.
4) AND PALM OIL RELATED EXPORTS HAVE INCREASED MORE THAN E & E GOODS BY PERCENTAGE
MAIN EXPORTS June 2017 % of % change (bln rgt) total vs year ago Electrical & 28.0 38.3 15.1 Electronic Products Chemicals and 5.2 7.1 4.5 chemicals products Petroleum products 4.7 6.4 -9.5 Palm oil & Palm-based 4.3 5.8 16.0 products Liquefied natural gas 4.0 5.4 97.3 Machinery 3.3 4.5 0.1 Manufactures of metal 2.8 3.8 -13.3 Optical and 2.2 3.1 -7.0 scientific equipment Rubber products 2.0 2.8 22.4 Crude oil 1.9 2.6 -1.0
As you can see Palm oil & palm oil based products are up 16% while E&E Exports are up 15.1%. Only rubber is higher at 22%
5) WHILE PRICES OF E&E SHARE PRICES HAVE GONE UP BY 100% TO 300% PALM OIL COUNTERS HAVE WEAKENED.
This shows us that most E&E stocks are now overvalued while Palm Oil related counters are grossly neglected & undervalue. Herein lies the Wonderful Opportunity to Bargain Hunt in All Oversold Plantation Stocks.
6) POWERFUL DROUGHT IN US HIGH PLAINS WILL SUPPORT CPO PRICES
Montana drought worsens, no relief in sightPosted: Aug 04, 2017 6:33 PMUpdated: Aug 04, 2017 6:37 PM
6) RISING CRUDE OIL PRICES WILL BENEFIT CPO AS CPO IS USED AS BIODIESEL
The rise of Crude Oil has benefitted Hengyuan & Petron. We see both their share prices chased up.
Unbeknownst to all the Rise of Crude Oil Prices also benefit CPO & Palm Oil Stocks as CPO is also used as Biodiesel.
So it is a matter of time the market will discover this hapy corelation.
7) DISCOVERY OF PALM HUSK AS CHICKEN FEED WILL ENHANCE PROFITS
Malaysia can save up to RM500 mln via usage of palm husks for animal feed — Minister
Calvin holds many Palm Oil Stocks
My Top 2 are CBIP & DUTALAND
I think DUTALAND is now Very Undervalue