Fundamental :
Company
has no bank borrowing as at 31st December 2020. They have adopted a
dividen policy of distributing 80% of the profit after tax. Revenue is cyclic
as palm oil is commodity.
Q1
Result
Two
major factors are CPO price and Production. I take the conservative 80%
production output from the average of 2020 & 2021. Based on this production
rate, let’s see how the CPO price will affect the earning per share and the
dividen yield.
The
EPS is generated using the formula that developed. It is not 100% but give very
good indication.
CPO
on Downtrend
The
CPO down trend will continue as Indonesia cutting the export duty and putting
more CPO supply to the market. Coming good harvest of Soybean in Latin America
will also help to ease the supply shortage. Hence, I estimate that CPO will
probably drop in between 3000-4000 level.
Based
on this CPO level and dividen yield return, the price to enter is around
RM1.36-RM1.50.
Stock
Price on Down trend
Price
already drops below the support level and will continue to drop. The bearish
continue trend has shown.
At
time of writing, I own some INNOPRISE shares @ low price. Waiting for
opportunity to buy more.
I agree with every factor you pointed out. The graph was very specified. This question of yours, “Can we still Invest” according to your diagram, there are many possibilities that you can. One thing is for sure you definitely need expert assistance or a consultant to make consistency on your project. I had done with it to my small business in Oregon. I implemented an IDShield Service in Oregon of William Henderson. I thank god for him because my small business was growing.
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