Koon Yew Yin
As you all know, I have been trying to teach you how to select shares with good profit growth prospect and as an example I used Jaya Tiasa. I even told you that my family members and I have bought more than 40 million shares and now my largest holding is JT. I also told you that on 31 Dec I bought 4.5 million JT at Rm 2.04 per share.
Many readers complianed that I was promoting Jaya Tiasa because I want people to buy to support the share. I have been telling you that I do not need you to make me richer because time will prove me right. My intention is noble and altruistic, I just want to teach you how to be a super investor.
As I said, the truth will set me free. Now a lot of serious investors are beginning to see that Jaya Tiasa has tremdous profit growth prosepect and they are buying as if tomorrow is too late.
If you look at the research I have done you will understand that the historical FFB production record cannot lie and if you use a litlle bit of imagination you can safely foresee that its profit will continue to grow for the next few years because the average age of their palms is only about 6 years and the FFB production peak is 11 years.
Many profesional analysts have already reported that the current up trend of CPO price is sustainable because Indonesia has mandated the use 3 million tons of palm oil to produce bio diesel for this year.
As I said again and again I do not need to buy to support the price of JT.
FFB production for 1st half of financial year 2014 from July – Dec 2013.
The above chart shows the annual Jaya Tiasa FFB production from 2007-2013 ending June. The FFB production increased by an average of more than 30% per year.
JT’s monthly FFB production from July – Dec 2013 are : 60,600 ton, 69,600, 83,066, 79,157, 74,161, 80,851 ton , totaling 447,439 ton. Assuming the 2nd half year FFB production is the same, the total FFB production for the coming financial year ending June 2014 will be 894,878 ton which an increase of about 32%.
Since the average age of the palms is only about 6 years and palm will produce the maximum fruits at the age of 11 years, I can foresee the FFB production will increase by about 30% per year compound for the next 5 years.
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