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Hi guys ~! Today can see some profit-taking taking place. If waited for the right time , you might see yourself in good leh long deal. As she always fluctuate between 0.20 - 0.30 cent.
Celestial soared after Merrill Lynch raised hopes of improved earnings, initiating coverage on the firm with a price target of $2.22.
"With rising demand for soybean products in China, we forecast earnings compound annual growth rate (CAGR) of 25% for FY2006-2008 with Celestial's strong brand and new production capacities," Merrill Lynch said in a client note.
Celestial will benefit from China's "Soybean Action Plan," which will result in "double-digit demand growth for soybean products in China," the report also said. Under the five-year Sobean Action Plan, China hopes to promote the domestic consumption of soy-based foods.
Celestial's foray into the bio-diesel industry through its joint venture with Japan's Daiki Co would also greatly increase the company's earnings, Merrill added.
"With rising demand for soybean products in China, we forecast earnings compound annual growth rate (CAGR) of 25% for FY2006-2008 with Celestial's strong brand and new production capacities," Merrill Lynch said in a client note.
Celestial will benefit from China's "Soybean Action Plan," which will result in "double-digit demand growth for soybean products in China," the report also said. Under the five-year Sobean Action Plan, China hopes to promote the domestic consumption of soy-based foods.
Celestial's foray into the bio-diesel industry through its joint venture with Japan's Daiki Co would also greatly increase the company's earnings, Merrill added.
Notice Pine Agritech's, its closest rival, has risen to S$2.25 today and Celestial is not even moving despite positive news flow! This does not make sense. Expect Celestial to move in the next few days to close the gap. Any views?
Celestial signed a MOU with Japan Daiki Co to form a JV to manufacture bio-diesel. Bio-diesel can be manufactured from soybean oil, vegetable oils, animal fats, or recycled restaurant greases.
The JV enterprise will target to produce 100,000 tonnes of bio-diesel per annum. Raw materials for production may include, but not limited to, soybean oil, other types of vegetable oils, animal fats and restaurant greases. The plan is to launch production by end 2007.
Bio-diesel is now produced and consumed in Australia, Brazil, Belgium, Canada, Czech Republic, Germany, India, Malaysia, Thailand, UK and US.
The bollinger bands predict explosive price change on this counter. I think it should happen in the next few days.
Whether its up or down, hard to tell now.
Whether its up or down, hard to tell now.
Yes, usage of biodiesel has increased. But is corn-based ethanol the way to go?
Cellulosic ethanol, the biofuel that differs from corn-based ethanol in that it can be made from pretty much any organic matter, has made an impression among people who matter. Alan Greenspan, the revered former chairman of the Federal Reserve with a big distaste for irrational exuberance, recently sang its praises before a Congressional hearing on energy security. Greenspan said cellulosic ethanol is the only alternative energy source that could be produced in enough volume to make a dent in gas usage.
Over the last 2 years, growth of biodiesel in the US has increased from 25M to 75M gallons.
Maintain a buy recommendation and target price of $2.40 based on 15x FY07 earnings.