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Good... cheong ah!!!
Golden Agri-Resources Ltd: In a sweet spot for strong growth
Summary: Demand for CPO worldwide is increasing and CPO prices are now close to record highs. This was buoyed by under-cultivation in the past, and as a result of this, supply is lagging demand. Golden Agri-Resources
(GAR) is one of the world's largest oil palm planters and producers of CPO, producing over 1.5m tons in FY06. It has approximately 338,000 ha of planted area (including plasma), with a mature area of 293,000 ha (including plasma). This makes it the largest owner of mature planted area among its peers. In addition, the age profile of GAR's trees favourably positions it to capture the upside in CPO prices. With the rising demand from China, consumption of refined vegetable oil products will also increase. We believe that with all the above positive factors, GAR is in a sweet spot to capitalize on strong demand and high CPO prices. While the stock has already appreciated 113% this year, we believe that the outlook remains rosy for GAR. We are initiating coverage on GAR with a BUY rating and a fair value estimate of S$3.22, or a 25% potential upside from the last closing price of S$2.57. (Carmen Lee & Research Team)
Q2 will be another better result as in Q1 compared with 2006, good vest reward at above $3. cheerss
Thks to all for the info. My thots are this is a good ctr; will be holding till above $3. In fact, may be good to average down now...
Give it some time...it a matter of time before it cheong over $3 
Can someone explain why Golden Agri fell despite +ve coverage? I thot it shld cheong above $3
Golden is a market leader in an attractive bsuiness, hence my optimism earlier.
But do watch the hgh revaluation gains registered in FY06 results..hope the real business profit will be good without the one time gains recorded last year.
Wow Eagles....bold but good predictions....look out for this counter...shld break $3 by this week
My conviction is this counter will keep going to reach MINIMUM 16x historical PE at $4.9 OR 16X fY07PE (estimated from 1Q07 results) at $6.14...lets watch if this will happen...
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Do keep some in your portfolio and cheers to all who got in earlier
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My target price hiting liao
... I agree with Eagles...FA wise this is a solid counter....to me it shld at least match Wilmar PE....therefore no problem crossing $3....
See ealier justification...this fellow should be in region of 3 - 4 very soon, if half year results post solid gains again, might be 5 - 6.
Can do contra trades for small profits, even better to hold as value will keep going up eventually
Cheong liao...........all e way....my target price for this stock is $2.80....but may well cross $3
The price increase in CPO (crude palm oil) will boost bottom line for both Golden Agri (Widjaja) family) and Wilmar (Kuok Group) as both are among world largest players...
Keep in your portfolio to reap >50% returns by year end...some salients points
1) World Largest palm player - possibly larger than Wilmar (Kuok Group for Malaysia)
2) Recovered from rough patch on early 2000, top and bottom line hit exponential growth since 2006
3) Expanding aggressively in China since Dec 2005 , growth driver in 2007 / 2008
4) JV with USA on biodiesel business - new growth engine for 2008
5) Rising price of CPO (crude palm oil) in 2007 - should boost 2007 profit
6) most importantly, current price to double to S$4+ see below PE reference
Wilmar historical PE > 50X, FY07 forward PE abt 30X
Lats closing price 2.45=>GAR PE historical = 8X, forward PER abt <8X
GAR at 16X PE = S$4.9...still way below Wilmars current price at 07PE 30x....
A 5-star must buy counter...
Grade A for mid-term investment, price will keep going up coz:
Solid 1Q07 performance, world no biggest 1 palm player, strong strong strategic alliance with USA for biodiesel development, recent huge fund raising positioning itself for expansion, sharp increase in global demand for plam => CPO price surge