The Composite Index, Plantation Stocks and the Wolf

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Jan 04 2008
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Who would have thought that the traditional boring plantation stocks will be the sector that jump-starts the New Year 2008 with a bang? People would most likely put their bet on financial, property or even oil and gas companies to be the hero entering the new calendar. But the crude palm oil (CPO) prices appears to defy the gravity and continue to comfortably floating above 3,000 mark with the Mar 2008 contract touched a new high of RM3,159 per tonne – thanks to global high prices of palm oil and soya-oil.

Sime Darby Berhad (SIME: stock-code 4197), IOI Corporation Berhad (KLSE: IOICORP, stock-code 1961) and even Tradewinds Plantation Berhad (KLSE: TWSPLNT, stock-code 6327) are happily enjoying the “bountiful harvest” today. Most of the telecommunication companies such as Telekom Malaysia Berhad (KLSE: TM, stock-code 4863) and DIGI.com Berhad (KLSE: DIGI, stock-code 6947) joined in the bull-party, pushing the Kuala Lumpur Composite Index to more than 30 points higher at one point.

To the fans of Vincent Tan (and FinanceTwitter readers), today could be a decision making day. Readers who invested in the Berjaya Corporation Berhad (KLSE: BJCORP, stock-code 3395) Irredeemable Convertible Loan Stocks, ICULS (2005/2015) BJCORP-LC (stock-code 3395LC), had either been taking some profit or decided to wait (brave-heart and greedy) for Vincent Tan to give hint(s) of his actual “exit-plan”. However if you care to look at both BJCORP and BJCORP-LC stocks movement today, surprisingly the BJCORP-LC registered losses while the BJCORP was in green. In normal days since Vincent started heating the “wok”, both will goes hand-in-hand – green or red together.

BJCORP stocks buy or sell?So, could the selling or major profit-taking started? I hope it was not due to my Mission-Accomplished article that mentioned amongst other thing “it’s never a bad idea to take some money off the table” when your position has already reach the 100% profit target. But if you have not jump into the bandwagon yet, should you take it now? I hope I know the answer. Go and read the previous article and decide on your own because the stake is already high to scream “Buy!”

Maybe this could help you to decide. Vincent Tan continued to accumulate BJCORP right to the last month of 2007 via married-deal – a whopping 42,500,000 shares at RM1.25 a share. He is holding a direct 28.78% and indirect 28.45% with total shares amounted to 1,684,360,506 in BJCORP. You also have some recent acquisitions from UBS AG London and Goldman Sachs. If you know Vincent well, chances are he might not have devoured the whole bull yet – talk about the old wolf.

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Thanks stocktube. I know what to do now, if I understand from you correctly:)


From the record, it shows BJCORP managed to make net profit of RM242,731 million with the increase of 455.21% last year (as of Oct 2007), looks like the share price (1.45 as of today) still have plenty of room to grow…


let’s hope so tom … besides fundamental this stock is tild towards major shareholders’ “push-up” … 🙂

cheers …

The fundamental…as major shareholder of BJLand who invested heavily in Vietnam (approx. USD 20.0bn) in the last few years…its rather hard to predict.

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