Comments on: Ride on the Oil Palm Industry Boom

By: hpcp

hpcp — Mon, 20 Jul 2009 05:18:34 +0000

what was said at
http://forum.lowyat.net/topic/545351/+280
sounds true

By: hpcp

hpcp — Mon, 20 Jul 2009 05:17:14 +0000

what was said in post 287 sound true

http://forum.lowyat.net/topic/545351/+280

By: Compassionate Soul

Compassionate Soul — Sun, 29 Mar 2009 14:00:15 +0000

Compassionate Soul is a not for profit organization through which we like disribute pulm seeds free of cost to the rural people of Bangladesh to plant 5 to 10 pulm saplings each
family on their unused land around their rural houses for a poverty alleviation project.
How can we proceed?

By: Aloony

Aloony — Mon, 16 Mar 2009 07:52:53 +0000

Recently, I was offer a similar investment scheme which exactly the same excepts below:-
1. RM15000 per acre ( instead of RM7000 per 0.25 acre)
2. Total 2000 acres offered which consists 70% rubber trees and 30% oil pam trees (instead of 100% oil palm trees).
3. Estimated to get full return (or more) of capital in the year 15, when the rubber trees could be logged.
4. 5% of commission to the operating company on nett revenue after deducting all operation cost.
5. No ownership of the plant plot as the is belongs to the government on 50 years rental contract basis.
Please help to advice me if this is a better deal or not.
Thanks in advance!

By: KCLau

KCLau — Thu, 26 Feb 2009 02:16:22 +0000

Hi Denn L,

Thanks for your input. It is almost impossible to give 17% return at this moment and situation.

By: Denn L

Denn L — Tue, 24 Feb 2009 04:10:51 +0000

I think it is too optimistic to claim that they can provide up to 17% of annual returns. This is because for a company which their strenghs are not in the plantation industry & was undergone restructuring, it’s nearly impossible for them to produce >25 Mt/Hectre of FFB per year.
In my opinion, the projected returns for this investment is just between 0%-13%.The risk is if the CPO prices drop below RM1300, the return rates will be lower than FD.

By: KCLau

KCLau — Mon, 16 Feb 2009 01:59:57 +0000

@Josh,

I really appreciate your valuable feedback. I can see that you are very experienced in palm oil plantation industry.

This product is much much more complicated compared to normal unit trust investment. A unit trust manager needs research team and investment experience in stocks. But for CHGS, according to your sharing, it requires a lot of work outside of manager’s office.

By: Josh

Josh — Sun, 15 Feb 2009 04:18:51 +0000

Frankly speaking, it is not easy to manage an oil palm estate and ensure it is profit. i have been in plantation field since young and constantly face many problems.

in order to ensure it is profitable investment they have to make sure few problems below is under control:

1) wild life from nearby jungle not harming young palm tree(elephant,babi hutan, monkeys etc etc) . on southern and western penisular estates, they do have good foundation on minimizing their threats. if they don’t , the damages might get to 30% of the plantation tress(baes on my 2k acres exeprience….i don’t dare to think kelantan nearby Gua Musang , big jungles areas is better than others existing estates.

2) workers. foreign worker not that interest to come malaysia and work in plantaion like before. locals don’t want work in plantation due to low paid. if CH give them good paid , then we won’t get good return.without thses worker…more worst, all our money(the fruit bunch) get rotten on the palm tree.

3) manager(person who managed the estates and makes it run) . do you know, a good managers who able to optimised their staff, good in saving companies money,knowledgeable in oilpamlm tree, good in goverment rules(workers rules), certified and really know how to good use MPOA and MPOB advises really can save (with average cost per tonne Rm 600++ per tonne(it is not a Joke, i had seen it myself) . even the fluctuating market of oil palm price (let say about Rm1.8K ) we still can earn 1.2K per tonne. unfortunately, not many managers really eager to be so efficient. if their average cost per tonne is more than 1.2k, thats the “manager” that i worried for.

4) oil palm tree . who gave this seed to them? reliable outputs? it is 23 years investment, if with just slight abnormalities on the tress, may god bless us.

5)goverment . plantation field have save our countries from recession many many times before. yet,i don’t see appreciation from goverment on helping plantation(much). there are too many taxes and explotation that outsiders don’t really know. when oil palm price is high, goverment taxed us “geng geng”. when price fall down and we have problem, who is standing out and protect us(worker regulation , fertiliser , taxes, pestisid banned etc etc). sad to said, not much….

Now , come back to CH investment. Unless they can ensure all problems as i mention above ,they CAN SOLVED IT, i might give them a chance.

there are still many factors which i would like to share. but i guesss, better to stop here.

thanks.

Josh

By: KCLau

KCLau — Sun, 05 Oct 2008 14:08:09 +0000

Yes. I think it is not so liquid

www.kclau.com
Via iphone (Ã§ÂˆÂ±Ã§Â–Â¯)

By: Kris

Kris — Sun, 05 Oct 2008 13:27:22 +0000

I saw this offer before. Seriously, i don't know the company that well. And i think over 23 years, there will be more profitable investment than this like unit trust, etc where you can easily GO IN & GO OUT easily. Palm oil has its economic cycle, sometimes the planters will suffer losses during those lean years.