Dec 15 2008, 10:42 PM
QUOTE(darkknight81 @ Dec 15 2008, 10:14 PM)
Reasons for my to choosing this counter :
1. Market leader in south east asia in producing chemicals products
2. Recent tumble in crude oil price may be a positive sign for this counter which has been slump from it highest of RM 1.80 to current RM 0.78
3. Debt to equity ratio of 0.5 which means more generous dividend policy in future provided they don acquire/build any new plants.
As it is dealing with chemicals, I would really suggest you hold back on your purchase.1. Market leader in south east asia in producing chemicals products
2. Recent tumble in crude oil price may be a positive sign for this counter which has been slump from it highest of RM 1.80 to current RM 0.78
3. Debt to equity ratio of 0.5 which means more generous dividend policy in future provided they don acquire/build any new plants.
The drop in price may not be just because of crude oil price but the lack of demand due to expected global recession.
Already BASF, one of the biggest producers of chemicals is already closing plants and laying off. I believe it's joint venture with Petronas in Malaysia is also slowing down or shutting down to reduce capacity. Simply because there is currently no demand for chemical products.
I would expect the industry drop more and pick up again as the world economy overcome recession. But for now, the prospects doesn't look good at all.
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your advice was same as Cherroy on the currently lack of demand for chemical products. 
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