Why Calvin is still bullish on JTiasa?
Because Calvin learnt from history. King Solomon said, "That which has been is what will be, that which is done is what will be done, and there is nothing new under the sun (Ecclesiates 1:9)
There is a clear pattern of EL NINO hitting planet earth from time to time. And when EL NINO hits the Palm Oil Market goes crazy!
Even though the Stock Market might Collapse The Palm Oil Market goes in an opposite direction. While Stock Market Crashes Downward The Palm Oil Market Surges Upward!! What a paradox! And so we must swith from conventional stocks in imminent danger of a crash to the Safety of Palm Oil related stocks then.
Why & how?
Let me quote the 10 Year Stock Prices of JTiasa from Year 2001 to 2011 to get a Clearer Overall Picture
Prices taken from Dynaquest Stock Performace Guide (Year 2011). The current Sept 2015 edition has a dilution of JTiasa Prices through capital exercise (so things are less clear).
JTIASA Year Low and Year High Prices
Year High Low EPS (sen)
2001 1.90 3.31 -13.2
2002 1.82 3.81 -35.6
2003 2.37 3.52 19.7
2004 2.91 5.33 16.6
2005 1.89 3.24 19.6
2006 2.00 3.81 15.1
2007 3.18 5.71 49.8
2008 1.43 4.24 20.8
2009 1.55 2.80 6.1
2010 2.60 4.85 9.1
2011 4.68 7.17 54.7
As you can observe from the 10 Year Figures
EPS (Earnings Per Share) spiked in Year 2007 at 49.8 cents
And EPS for Year 2008 was 20.8 cents.
While Malaysia Stock Prices Crashed with the US Subprime Debacle in 2007/2008
Jtiasa year highs were Rm5.71 for year 2007 & Rm4.24 in Year 2008
This Was Due to the EL NINO WEATHER PHENOMENA.
According to 20 Year Palm Oil Price Chart Palm Oil Prices Spiked in Year 2007 and also in Year 2011 Due to the EL NNO EFFECT.
So Will Palm Oil Price Follow Historical Pattern Pattern and Spike Up Due To Another POWERFUL EL NINO?
Yet to be seen
Hmmm?
Let's wait and SEE!
Regards,
Calvin
http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/89412.jsp
