re: mills, we will run the mills ourselves of course. it is a progression of diversifying downstream. we do not just 'sell plots', we are a plantation company.

OER - we do aim to hit the industry average of 20%, which is not unachievable.

re: 24 tons/ha - we do aim to hit that figure some time during our harvesting stage. of course, we will not hit that right off the bat. these figures depends on things like tree profile, etc. in our case, we are confident of hitting it eventually because of our fertile land. our land is  surrounded by other productive plantations, all who are highly profitable too.

RE: replanting - it is also in our prospectus that investors can vote for the option to replant after the end of our scheme too if they feel that they do not want to sell the plantation.

SPACs - investor protection? Tell that to the investors of the 72 SPACs that have been liquidated since 2004 worldwide. There are risks in every product. all products have successes and failures cases, be it SPACs, interest schemes, hedge funds, PEs, mutual funds, unit trust, etc. You dont like SPACs? Well, some people do. some institutional investors do too. everyone has different risk appetite. if you are so risk averse, perhaps you should just hide your $ under your bed or put it in a FD, because banks totally will never collapse right?

again, the 'robbing peter to pay paul' part is merely your words, not mine. this is financial structuring of a product, not any different to other industries where securitization can happens. you can also see this in real estate where there are concepts like DIBS, or 2 years 7% rental income guarantee, free legal, SPA, etc. All things are of course priced in. This is a legal sweetener. Nothing wrong about that.

re: your calculations, i disagree with many parts. many of the extra costs u add are already priced into the break even point / operating margins.

Cost of production is not RM 1500. It is lower than that. You are making things up, like "better than 90% of listed plantations", just like your " bnm warned against this" allegation. You are also assuming that we wont try to improve to reduce cost by improving efficiency.

"CPO futures prices are not likely to break the RM1,800 ring-git per tonne mark and even the most inefficient oil palm plantation companies producing CPO within the RM1,500 per tonne levels will be able to stay profit-able in these bearish market conditions.”
http://www.theborneopost.com/2013/03/17/pa...ish-or-bullish/

"Currently, the cost of production (COP) among well managed oil palm plantation companies in Peninsular Malaysia would be about RM1,300 to RM1,400 per tonne of CPO."

See Nomura's  Asean Palm Oil Research, April 9 report.

Our projected returns are tied to palm oil prices. If palm oil prices are high, then investors will get a high return too. We will return 100% of our net audited profits, minus a 5% management fee. simple as that. nothing unrealistic or overreaching.

the word we used is 7% guaranteed returns. once again, you are not referring to any of our materials / prospectus, but talking from your own misconceptions / prejudice.

re: investing in shares, again, i have pointed out, that 1- share prices are volatile, and dividends are lower.  the investment profile is complete separate, as these are separate type of products.

the projected earnings is based on CPO prices being RM 2500 - RM 4000. This again, along with a projected earning chart, is clearly stated in our marketing materials. if prices go below that, then we can only pay lower dividends. Once again, you are just talking without referring to our actual materials.

again and again, i have pointed out articles, research reports, papers, etc to refute your words. we cannot please everyone. there will always be people who believe in a product, as well as naysayers.

re: future palm oil prices, i of course cannot make any predictions. what i can say though, is that we are optimistic about the potential of palm oil, based on the supply and demand of palm oil. palm oil is widely used in everything, and is cheaper than other vegetable oil. fast developing countries are increasing their per capita consumption of palm oil as they become more prosperous.

palm oil however, cannot be planted everywhere in the world. cultivatable palm oil land in this region is dwindling, forcing companies to go to foreign countries (png, liberia, colombia, etc) where they do not have local knowledge (political, labour issues, etc) to palm. initiatives like biodiesel (b10 in malaysia, indonesia) will also help to support prices. other initiatives like the POIC are also allowing plantations to get revenue from palm oil waste like empty fruit brunches (EFB) for the biomass industry. also, in the country, organizations like MPOB and Pemandu are also working to improve yields and OER - see the ETP report.  therefore, we are optimistic about the palm oil industry.

I would not say that land for palm oil cultivation is dwindling with respect to demand. In fact, I think not

Yes....will be oversupply at this rate IMO.

I can help them with their OER.........    at least 0.5% more

It sound to attractive for such scheme, guarantee 7% for the first 5 years, i can brain why the logic they giving out like this

Lend money from bank = BLR + 1% = 7.6% (If i'm not mistaken for agricultural land and allowed for 60% financing only)