Dear Fellow Investors of i3 Forum,
Calvin has been watching very closely Palm Oil Stocks for more than 2 years now. And I think the time for Palm OIl & CPO stocks to perform has arrived:
And these are the TOP 10 REASONS for BUYING PALM OIL STOCKS:
1) PRICES UP 20% TO 25% SINCE YEAR 2015
I spoke to one Johor Buddy named K.E. Tan who owned Palm Oil Plantations in Johor.
He said that last year FFB (Fresh Fruit Bunches) was going for Rm400 a ton. This year January 2017 it went up to a high of Rm580 a ton. Now it hovers around at Rm500 a ton. So prices have gone up by 20% to 25%.
2) HIGH PROFIT MARGIN AT CURRENT CPO PRICES OF RM2,500 TO RM2,600 A TONNE.
Let me quote a fellow i3 Forum Investor's words here:
Posted by chongyo > Aug 6, 2017 08:18 AM | Report Abuse 
My job for 30 years is
closed linked to palm oil. CPO hovering at RM2,500-RM2,600 throughout
2017 coupled with strong yield recovery this year will see plantations
laughing to the bank. Production cost is as low as RM1,300 for the
efficient and bigger plantation and RM1,500 for the smaller players.
What business give almost 50% Gross Margin ??
Even CPO at RM2,000 , no pure plantation company will NOT loss money.
So , buy pure plantation company like SOP which is grossly undervalued !
Even CPO at RM2,000 , no pure plantation company will NOT loss money.
So , buy pure plantation company like SOP which is grossly undervalued !
Notice our friend chongyo's words
My job for 30 years is closed linked to palm oil.
What business give almost 50% Gross Margin ??
Chongyo has 30 years experience in palm oil. And he stated that Palm
oil current gross margin is 50%. This is better than most construction
stocks or property stocks
3) WHILE CPO SURPLUS STOCKS HAVE DECREASED PRODUCTION OF FFB HAS INCREASED BY 30%
This double blessing of rising prices Plus Rising Fruit Yield is now a Double Blessing for all Oil Palm Owners.
4) AND PALM OIL RELATED EXPORTS HAVE INCREASED MORE THAN E & E GOODS BY PERCENTAGE
MAIN EXPORTS
June 2017 % of % change
(bln rgt) total vs year ago
Electrical & 28.0 38.3 15.1
Electronic Products
Chemicals and 5.2 7.1 4.5
chemicals products
Petroleum products 4.7 6.4 -9.5
Palm oil & Palm-based 4.3 5.8 16.0
products
Liquefied natural gas 4.0 5.4 97.3
Machinery 3.3 4.5 0.1
Manufactures of metal 2.8 3.8 -13.3
Optical and 2.2 3.1 -7.0
scientific equipment
Rubber products 2.0 2.8 22.4
Crude oil 1.9 2.6 -1.0
As you can see Palm oil & palm oil based products are up 16% while E&E Exports are up 15.1%. Only rubber is higher at 22%
5) WHILE PRICES OF E&E SHARE PRICES HAVE GONE UP BY 100% TO 300% PALM OIL COUNTERS HAVE WEAKENED.
This shows us that most E&E stocks are now overvalued while Palm Oil related counters are grossly neglected & undervalue. Herein lies the Wonderful Opportunity to Bargain Hunt in All Oversold Plantation Stocks.
6) POWERFUL DROUGHT IN US HIGH PLAINS WILL SUPPORT CPO PRICES
Montana drought worsens, no relief in sight
Posted: Aug 04, 2017 6:33 PMUpdated: Aug 04, 2017 6:37 PM
GREAT FALLS -
Export table: 
Montana's devastating drought has worsened for the 11th week in a row.
The latest U.S. Drought Monitor shows more than half of the state is
now in a drought, with nearly 86% of the state experiencing "abnormally
dry" conditions.
It's the 11th week in a row that the drought has expanded across Big Sky Country.
Those counties under a D2 or greater designation (at least a severe drought) are eligible for federal aid.
This "flash drought," as it's being called, took many by surprise.
A nearly rain-less spring and summer across the eastern half of the
state resulted in poor conditions for farmers and ranchers.
Just last fall, northeastern Montana experienced record rainfall and
historic flooding, and many expected the 2017 growing season to be
fruitful.
Unfortunately, there is no significant relief ahead.
The August outlook is still relatively dry, without much-needed rain in the forecast.
Calvin comments:
In the heartland of the US Corn/Wheat /Soy Belt of North Dakota, South Dakota & Montana a powerful drought is now ongoing.
U.S. Drought Monitor
High Plains
Download: 
August 1, 2017
(Released Thursday August 3, 2017)
Valid 8 a.m. EDT
| Week | None | D0-D4 | D1-D4 | D2-D4 | D3-D4 | D4 |
|---|---|---|---|---|---|---|
| Current 2017-08-01 | 41.61 | 58.39 | 31.93 | 17.93 | 8.11 | 1.06 |
| Last Week 2017-07-25 | 37.57 | 62.43 | 31.21 | 17.92 | 8.59 | 1.06 |
| 3 Months Ago 2017-05-02 | 92.76 | 7.24 | 0.75 | 0.00 | 0.00 | 0.00 |
| Start of Calendar Year 2016-12-27 | 50.65 | 49.35 | 21.54 | 4.05 | 0.00 | 0.00 |
| Start of Water Year 2016-09-27 | 70.86 | 29.14 | 8.66 | 2.68 | 0.17 | 0.00 |
| One Year Ago 2016-08-02 | 62.58 | 37.42 | 13.36 | 4.04 | 1.48 | 0.00 |
Estimated Population in Drought Areas: 1,454,254View More Statistics
Intensity:
- D0 (Abnormally Dry)
- D1 (Moderate Drought)
- D2 (Severe Drought)
- D3 (Extreme Drought)
- D4 (Exceptional Drought)
The Drought Monitor focuses on broad-scale conditions. Local conditions may vary. See accompanying text summary for forecast statements.
Author(s):
6) RISING CRUDE OIL PRICES WILL BENEFIT CPO AS CPO IS USED AS BIODIESEL
The rise of Crude Oil has benefitted Hengyuan & Petron. We see both their share prices chased up.
Unbeknownst to all the Rise of Crude Oil Prices also benefit CPO & Palm Oil Stocks as CPO is also used as Biodiesel.
So it is a matter of time the market will discover this hapy corelation.
7) DISCOVERY OF PALM HUSK AS CHICKEN FEED WILL ENHANCE PROFITS
Malaysia can save up to RM500 mln via usage of palm husks for animal feed — Minister
KUALA LANGAT: Malaysia can save up to RM500 million in the import cost
of chicken and aquaculture feed annually if industry players know how to
capitalise on the benefits of using palm husks.
Minister of Plantation Industries and Commodities Datuk Seri Mah Siew
Keong, said this was because the use of palm husks for chicken feed had
proven to improve the quality of the meat, while the poultry mortality
rate would be lower than the industry average.
He said there were 45 factories in the country involved in the process
of palm husks for poultry feed; however, they were more focused on cow
feed.
Hence, Malaysia needed to import chicken feed and its cost which had
reached up to 25 per cent of the total industry cost was viewed as too
high, he added.
Due to this, the Malaysian Palm Oil Board (MPOB) and Sime Darby
Plantation Sdn Bhd (SDP) have collaborated to develop the first
pre-cleaning system for chicken and aquaculture feed from palm husks in a
move to reduce the sector’s dependency on imported products.
“Malaysians consume 1.8 million chickens daily and the importers have
to spend up to RM5 billion annually to meet the cost of the poultry
feed.
“Chicken feed produced using the new system developed by MPOB and SDP
will not only save on import cost, but the quality and safety of the
feed can also be controlled,” Mah told the media after launching the
pre-cleaning system here yesterday.
He said the pre-cleaning system, which had been implemented by SDP
since October last year, was targeted to meet up to 10 per cent of the
chicken and aquaculture demand annually.
In another development, he said palm oil exports in the first three
months of this year increased RM3.31 billion or 37 per cent compared
with the same period last year.
He said even though the export was lower at 3.65 million tonnes this
year from 3.69 million tonnes last year, the increase in export value
met the ministry’s target.
“This is a good development and it showed that the oil palm industry is
also an important economic sector for the country,” he said.
Meanwhile, SDP managing director Datuk Franki Anthony Dass said the
chicken and aquaculture feed product under the ‘Purafex’ brand produced
by the company was cheaper than soy- and corn-based products.
“Before this, SDP only produces cattle feed. However, the system that
is fully funded by MPOB has allowed the company to embark on a new
business.
“We are targeting chicken-based fast food companies as a business
prospect as poultry fed on Purafex produces healthier meat and less
fat…Purafex can also be an alternative to products based on soy and
corn,” he said.
In a separate statement, SDP said Purafex, could lower the production
cost of chicken feed by about 10 per cent, or RM180 per tonne.
It said poultry feed accounted for up to 70 per cent of the poultry
industry’s total production cost, mainly due to imported ingredients
such as maize and soy, leading to an average of RM5.6 billion yearly
expenditure on animal feed and about 55 per cent of that on importing
maize. — Bernama
8) TRUMP'S TRADE WAR WITH CHINA WILL CAUSE CHINA TO TURN TO MALAYSIA FOR CHEAPER PALM OIL THAN US SOY.
Already a friend of China in the South China Sea Islands dispute
Malaysia being an ally of China can expect more orders of CPO from
Malaysia. This coincides with the uplift of bird nest ban from Malaysia.
9) PALM OIL WAS THE
ONLY GROUP OF STOCKS THAT WITHSTOOD THE ASIAN FINANCIAL CRISIS &
ALSO THE LEHMAN BROTHERS' CRISIS FOR YEARS 1997/8/9 & 2007/8/9
3) This is the Most Important lesson of all. Mr. Liew from Tawau bought
those Oil Palm lands for only Rm500 an acre in those days. In year 1993
he sold half his plantations and moved to KL & started a Used Car
Company in Kajang called Helang Camar. The timing was impecabble as he
was in the midst of the GoGo Years before the Asian Financial Crisis of
1997/8.
Times were great and he was doing a roaring business. Monies kept
rolling in and piling up! He was so happy with the fast pace of money
making in KL compared to the slow snail and dull business of tending oil
palm plantations in Sabah.
He wanted to sell off the other half of his slow moving oil palm
business in Tawau, Sabah and put all his capital into KL's Car Business.
This was in year 1996 - near the very peak of the Boom!
At this time Used Car Dealers would make multiple bookings for New
Proton & Perodua Cars. Some booked 50 units & some booked in
hundreds. Waiting list for cars stretched from 4 months for a Proton
Wira to as long as One Year wait for a New Proton Perdana!
To get hold of a New Proton Perdana then you have to pay as much as
"Rm10,000" extra! to get one. Such was the extremely over heated market
of the GoGo Years.
I was happy to have warned him not to do so as the future is unknown (Asian Financial Crisis arrived in 1997 just one short year away)
And when the Asian Financial Crisis Struck! All the 3 years of
accumulate profits that Mr. Liew made were wiped out in just 3 short
months! At that time a Proton Iswara 1.3 worth Rm33,000 before the
crisis could crash 50% to only Rm16,500 (50% Value Wiped Off in just
months)
So many gone bankrupt with the twin collapse of KLSE (Crash from a high
of 1332 to its lowest at 262 points) & all assets (Houses, cars,
businesses - everything fell like tent pins in unison.) There was no
escape but facing total lost and imminent bankruptcies for all those who
over leveraged.
It was during these dark and bleak times that Oil Palms gave him
solace. And to his surprice CPO prices shot up! And lifted him from his
gloom and compensate his losses in his Used Car Business.
Extracted from THE IMPORTANCE OF DIVERSIFICATION
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/128358.jsp
10) WHILE ALL OTHER CLASSES OF STOCKS HAVE WITNESSED ROTATIONAL PLAY PALM OIL COUNTERS ARE YET TO COME INTO FOCUS.
This is the main reason why Calvin Tan Research is extremely bullish on all CPO and Palm Oil Related Counters.
From such a low base. With rising prices. Rising production. Rising
exports now beating even E&E exports. With ongoing US Drought in the
High Plains. With Rising Crude Oil prices lifting up Biodiesel prices.
With China as an ally to buy more CPO from Malaysia.
THIS IS NOW THE TURNING POINT FOR ALL OIL PALM STOCKS
JUST TAKE POSITION EARLY NOW FOR A MULTI YEAR UPSIDE POTENTIAL
Warm regards
Calvin Tan Research
Republic of Singapore
NOTE:
Calvin holds many Palm Oil Stocks
My Top 2 are CBIP & DUTALAND
I think DUTALAND is now Very Undervalue
http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/129358.jsp
