Dear Fellow Investors,
We continue to search for value.Within the current KLSE inertia more value opportunities are emerging.
One such opportunity is in the plantation sector. There are some quality plantation shares that offer solid fundamentals, high dividends and honest management. Some are trading at reasonable valuations.
Two small countries Malaysia and Indonesia produce 90 % of the total world palm oil which represents a large share of edible oil. Our largest buyers China and India can not grow palm oil and as their wealth and population grows they will continue to buy more palm oil from us. That means well run plantation companies will benefit from sustainable profit growth.
As value investors we always focus on profit growth over time.
Based on the latest PORLA report the world requires over 7 million tonnes of additional edible oil per year. Demand will increase as well as palm oil prices due to population and wealth growth.
Global consumption of vegetable oils is in a steady uptrend since 1995
We intend to add a quality plantation counter to your portfolios in due course.
It looks like the tax overhaul in the US is on course to become law. It will lower taxes for corporations and individuals. and will stimulate consumer spending and boost stock markets world wide.
If the liberals/socialists in the US block the Trump tax cuts it should not affect the supply demand for oil seeds and most of the shares we hold.
Invest well and grow your wealth
Bill
Today’s beautiful critter is an albino moose from Sweden. Government officials wanted to euthanize the moose because it was eating apples from the forest and was a general nuisance .
Thanks to You Tube publicity there was a huge public outcry and the government officials backed down.
Thank God for technology. It saved the moose as the moose is now safely in a sanctuary.
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