from The Edge Daily - "according to the draft prospectus, FGVHB has 323,587ha of oil palm estates of which 53% consists of oil palm trees that are more than 21 years old.."
Whether it is worth or not to apply, you be the judge. one analyst value the IPO at RM3.90 taking into account its EPS of 27 cents and the above
oil palm trees have an average life of 25 years.
Compared with FGVHB, 71.9% of Bumitama's total planted area is made up of immature and young plants. The rest are at the prime age of 7 to 18 years. Hence, Bumitama's growth potential far exceeds FGVHB
Little wonder that Bumitama's IPO closed with a 27.5% premium above its offer price in Singapore.

This post has been edited by Oracles99: May 2 2012, 09:45 PM

From the Edge, "to compare the growth potential, 71.9% of Bumitama's total planted area of 119,162ha is made up of immature and young plants. the rest are at the prime age of 7 to 18 years. the company also owns 72,786ha of plantation land waiting to be planted....In contrast, 30.7% of FGVHB 's planted area is made of immature and young trees. Trees from the age of 10 to 20 years account for 16.4% and roughly 52.9% of the planted area was of old trees.."
As the Felda issue is political, it is likely investors would not make any loss but would probably not make much profit
And again the Edge reported..."the replanting will keep FGVHB's profitablity under pressure.... this means FGVHB will need to spend RM2.6 billion on replanting over the next 5 years, the OSK report said.

Unfortunately, I do not have the OSK report. International investors will of course do their maths properly before bidding. It is my opinion that the bid price would be at the low end of the scale. Well good for us local investors too.

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Added on May 3, 2012, 11:18 pmsame opinion

This post has been edited by Oracles99: May 3 2012, 11:18 PM

with an EPS of around 27 cents - I think the premium upon listing won't be much but u probably won't make a loss. Certainly not for the long term

You can download it online from Bursa website

FGV is for the very long term. Replanting all its old trees will take a big sum of money, affects dividends and profits. If u take long term to mean 10 years, we would probably see some down cycle which u might be able to buy at a cheap price. Stock market moves in cycles. The oversubscription by institutional funds does not indicate a high opening price.

You are right. That is what appear in NST today

Facebook also has a shield but the investment bank ran for its life after the 3rd day

From Edge today,
Louis Dreyfus failed to take up share allocation which took place yesterday. Said to be reconsidering.

Why must they acquire in the open market when they have a chance now? They are quitting as cornerstone investor.

what is FGV's real attraction besides being a GLC. Its old tress covering 60% of its plantations?

Nobody can be sure of the "floor price". Investors are buying old tress!

This post has been edited by Oracles99: Nov 12 2012, 08:33 PM

I agree. Najib is now saying BN will scrap Condo project in Batu Caves if BN wins knowing very well that it is BN which approved the project quietly. What a joke.
It is like saying "now that you have caught us pants down by revealing the names of those who approved the project, we have no choice but to scrap the project"
I think this should be the joke of the decade
An apology should have been better. This is the sentiment among the Indian voters in my area. What a shame

This post has been edited by Oracles99: Nov 13 2012, 10:50 PM

excellent info

FGV is in a sideways range bound movement now. Be prepare for a long waiting time if you are interested in this stock. Traders buy this stock to speculate n not to hold.
I bought this stock at the end of last year n sold for a profit after holding for 1 week.

Actually I made no gain. I use it to cover all my losses from CIMB.

Luckily u cannot sell short. Otherwise it would have fallen even more.

But small rebound may have more bones than meat.

Whatever it is, in the short term nothing will change unless their trees profile changes. It is still about old trees.

Just like CIMB, it kept buying every asset it came across. Now it is selling them off. So why buy in the first place. This is call greed n it leads to indigestion

From The Edge Weekly, FGV's cost of production is above RM2000 per metric ton, by far the highest among Malaysian plantation players. FGV said its earnings would improve when price of CPO rises. But how much it expect CPO prices to rise?
The end of QEs means that high price of CPO last seen during the QEs would not recur again. The doccuments " The setting of the Commodities Sun", "The end of the Commodities Supecycle" is still available if one googles for them.
The FGV said the acquisition of Rajawali would bring down the age profile of its trees to 8.5 years from 15 years. But how can it happen when FGV is unable to consolidate its accounts with Rajawali as it is not a subsidairy?