IPP model is actually good.

It is like outsourcing, by then you can concentrate more on your core business issue, and less man-power and personnel needed eventually reduce the expenditure as well as potential capex and tedious maintenance issue on power generation.

You buy Rm x from IPP, then sell it at RM Z = x + y(profit+ cost), which is the perfect model of profitable business.

But... the contract....

I don't think this market will fall below 1100-1200, unless we have full blown recession, which at the moment seen unlikely.

800? slowly wait, ban ban tan (hokkien)

It assumes glove price won't go down, by then profit will rise with USD rise.
Then yes.

But if recession did hit, yes, rubber price goes down, while potentially glove price goes down as well.
As there may be excessive capacity that come online due to expansion previously when glove price is good time.

This post has been edited by cherroy: Oct 4 2011, 10:34 AM