Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Tuesday, June 26, 2012

Felda Global Ventures. Heard on the streets

By Cynthia Koons and Duncan Mavin
Young palm oil trees can be about three-feet tall with bunches of leafy palms sticking out on top. It's not easy for them to sneak up on you. Yet at Malaysia's state-run plantation company Felda Global Ventures Holdings Bhd. (5222.KU), the cost of planting trees was partly to blame for a surprising drop of about 50% in first quarter net profit.

The timing of such bad news is disconcerting given Felda's just raised $3.1 billion in the world's second largest initial public offering this year after Facebook Inc.'s (FB) ill-fated share listing. The profit slip marks a sharp contrast from the IPO prospectus, which promoted the group's expertise as the world's third-largest palm oil plantation operator in the world. Underwriters also talked up demand, citing a 4.2% rise this year in global consumption of edible oil and fats--one of palm oil's main uses. That hasn't meant much for Felda so far. First quarter revenue barely budged, rising just 1.8% from last year.

There can be few excuses for such poor foresight. A plantation company should know how much it costs to plant trees. Felda also said it had to pay a higher-than-expected price for crude palm oil. But given that's their business, it's hard to see how they couldn't have anticipated this sooner.

There's another reason to question Felda's growth story. The group's trees are older than competitors' on average, which makes them lower yielding. That explains why they're planting new ones.

Tuesday's profit drop raises questions about Felda's credibility at a critical time too. The company's shares will debut on the Malaysian stock exchange two days from now. They priced near the top of the range the company had been looking for, defying a tough market for IPOs globally, Felda sold its deal thanks to abundant demand from institutional buyers. But they won't hang around if the company keeps delivering unwanted surprises.

Thursday, June 14, 2012

More liquidity lifted global stocks & commodities

Rumours of more liquidity into the markets by major central banks  after the Greek election  lifted equities and commodities..
Aussie dollar broke above parity trading today at 1.002
Gold held onto its gain to trade at USD 1625 on speculation that the FOMC meet next week will bring QE on the table ...

However price of CPO fell further to USD 855 ...

Thursday, June 7, 2012

Plantation. Golden Agri

Golden Agri 3 months share prices fell from 80 SG cents to 60 cents ...

CPO prices fell to USD 930. Malaysian planters share prices to falter in days to come ..?

Gold dives on BB's testimony bf. JEC

 Gold in USD plunges after Bernanke's testimony indicates no plans for immediate stimulus although Fed is ready to take action if financial troubles escalate.
Gold drop from 1625 to 1585, shedding 40 dollars
Gold in AUD dived from 1630 to 1595 ..

AUD lost half a US cent from 99.8 to 99.3
Since Monday 4th Jun, it has spiked from 96.3 gaining 3 cents on less than expected interest rate cut of 0.25 percent and better GDP numbers ...

Monday, June 4, 2012

Impending Impact on AUD & USD. Gold @ 1620

RBA to fix cash/interest rate, Tues 5th 12.30pm followed by announcement of employment change and unemployment rate the following day at 9.30am

US jobless claims report is due out on Thurs 7th at 8.30pm followed by B Bernanke's testimony on the economic outlook and policy.
FOMC will meet on 19th June and make a statement on Thurs 21st ..

Greek parliamentary election is on Sun 17th June.
Gold hovering at 1620 USD.
Don't buy yet: wait for it to dip 1555 - 1575 level ...

Saturday, June 2, 2012

Gold goes ballistic. USD climbs.

Gold goes ballistic with an almost 4 percent gain to reach 1626 USD.
 US job data for May indicates addition of 69 k instead of the expected 158 k, prompting traders to bet on additional QE (which is positive for gold) when operation Twist ends in June ...
Gold trades for 1677 Aussie dollars 
Meanwhile commodities index CRB continues to slide to 268 on China slowing growth
USD climbs slowly from 3 Ringgit in March to touch  RM 3.20
Will it rise to 2009 high of RM 3.6 ..??
CPO fell below USD 1000; at 941