I read that plantation counters will continue to shine in year 2008

so I was thinking to buy one or two to keep

I can think of a few, eg. Batu Kawan, IOICorp, Boustead, Kulim, Kwantas, SOP, THPlant, Unico etc.

currently I am interested in Batu Kawan & IOICORP, but their price is already high..

What do you guys think?

2291. Asiatic will be a growth stock for plantation. It's owned by Genting group.

hsplant?

Well, if you're looking for cheaper ones, MVEST 1902 should be a keeper, its RM0.79 now, looking at the current trend where crude oil price is not getting cheaper nowadays, plantation (palm oil) counters are doing really well.

But beware though, some said that crude oil prices is already at the peak now, so if you're hoping that the price of crude oil keeps on hiking, you have to becareful then.

tanamas, and of coz KLK

I m eyeing only one 3 counters.

IOI, KLK, Asiatic.
but seems like the best divident pay out is by IOI which is my first choice.

IOICORP should be quite steady....Div, Share Split & Cap Repayment.... n BKAWAN as well.

For my personal preference, IOI & KLK would my top pick. But sadly, current share price are little bit expensive.

Buying Batu Kawan = owning KLK as KLK major shareholder is Batu Kawan, if not mistaken BKawan holds more than 40% of stake in KLK. I might be wrong, long time not updated already since after sold off the BKawan. (Sold a bit too early also, otherwise gain more than 30% now). Bought Rm6.50 (before bonus) sold at Rm9.00.

u wont know wat will happen
now 11.xx

This post has been edited by feralee: Dec 28 2007, 04:58 PM

In stock market is always the case, when you sold a counter, it went extremly high after that, you regret but when it turn south you feel relief and lucky is able to let go at a good price. It happen many time to me, i sold my BURSA at RM7.00, PBBANK-F at RM7.00 TANJONG at RM11.50 and MAYBULK at RM3.50...looks what's the current price now compare to my exit price....

No one can maximise the profit/gain or no one can sell at the highest or buy at the lowest. Don't need to search for the highest or lowest, it is wasting time, as long as my portfolio achieved satisfying result of gain, then no regret already.
I think it is should be the way to treat it. If everytime want to regret after sold (the stock goes higher after that) then you will be regretting all the way in your life.

me oso mah...

sold my GAMUDA-CD at 0.035 (two weeks before reaching the maturity date), see today's closing price

just tell our ownself, dun look back, that's it.

Yup, don't look back, look forwards. Only look back what mistake have been done and learned from it then move forwards, there is no point of regretting.

did they write y it will shine?

IMHO, d palm oil price is too expensive d.. although there is huge increase in export to china but AFAIK, d price they buy are below market price..

i belief d real 1 benefit from this is company that r dealin in our country.. i might b wrong though

Well, the high price will be realised in Feb08.
Right now they still buying at around RM2600-2800 cos thats the CPO future price for DEC07 lastime.

HSPlant recent quaterly report looks promising, they reported RM0.29 profit fo every RM1 share. However the share have appreciated about 10% since report was out. If they can maintain their profit for next quater above RM0.20, i am going to invest in this counter.

Can also consider their parent company Hap Seng, besides having shares in HSPLANT, Hap Seng is also distributor for MB. With the new MB C Class out, Hap Seng income should be good and in addition to getting income (dividen payment) from HSPlant.

and Hap Seng just gave a 46 sens special interim in early December 07

but the price re-adjusted a lot after the dividends, from 3.2X drop to 2.5X

That's why don't buy for the sake of getting dividend, mostly you ended a loss in short term after the ex.
Only you hold long term for getting dividend will gain as normally when special high dividend is announced, share price will pop up and surge. If one only buys after the news of dividend come out means you are buying at higher price already.

As prior before ex, a lot of people are chasing it because of the dividend which makes the share price going up. After the ex, people losing interest already, so not many buyer around, some selling activities can easily push down the price already. But if the company continue to give generous dividend then share price will rise up again in the future but it takes time.

But having said that, this kind of special dividend is not repeatable. Those repeatable and consistently dividend can only through company business operation profit.
So whenever assessing the dividend history of the company, watch closely on the EPS and dividend. If the dividend is come from EPS, you know this dividend is repeatable and can be cosistent if future EPS prospect looks good.

hw about SIME???

Some tips and tricks to buying plantation counters...

1. FCPO pricing
Look at the FCPO prices currently its hovering at about RM 3,100 per tonne which is a plantation owners wet dream.
Price has risen comparing the pass 2 weeks figures from around Rm 2,900 per tonne to Rm 3,100 , momentum is expected to run out but for the time being the wet dream continues.

2. Plantation Yield Factor and Profitability...
a) Some plantations have massive land banks i.e. Synergy Drive , unfortunately for them for a Palm tree to reach maximum profitability it will take from nursery to planting to prime at least 10 years before a Palm see its full potential.

b) Caveat - Palms which have reached their maxiumum yield and is on the verge of replanting the cost will be high, which will affect the bottom line.

c) New and upcoming plantations, high cost, unplanted palms, uncertain-profits and debt riddle in the long run?

d) Existing plantation is more to yield factor.

3. Weather - Flood in Johor (long term effect?)

4. World oil prices - signal ? Higher oil prices means higher demand for CPO

Take your time to digest some or all of this information and you will see some potential Plantation stocks emerge, which have been over-looked at the same time undervalued by the market.