Red circle to indicate to you that the downtrend (RED LINE) is gaining momentum.
Greenhills? Its just a shade to show that the Oscillator - CCI (use only for ranging price action) is in the OVERBOUGHT region.
pharoah88 ( Date: 26-Mar-2010 10:40) Posted:
thank you for this beautiful chart analysis.
What is that Red Circle?
What are those Green Hills?
KiLrOy ( Date: 25-Mar-2010 20:41) Posted:
The hope for a continuous uptrend is dashed. The lower support of the uptrend channel has been breached today and the negative trend is starting to gain momentum.
The hope for a continuous uptrend is dashed. The lower support of the uptrend channel has been breached today and the negative trend is starting to gain momentum.
The hope for a continuous uptrend is dashed. The lower support of the uptrend channel has been breached today and the negative trend is starting to gain momentum.
can see someone try to throw huge volume of their shares....just wait and see who is the burger who want to make this counter dip...anyway..still hold on to it to see 0.6 .
See the following but my entry target is $0.50 in order to have a greater margin of safety.
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Golden Agri-Resources March 23 close: $0.565 OCBC INVESTMENT RESEARCH, March 22
NESTLE, the world's largest food company, has dropped Sinar Mas Agro Resources & Technology (Smart), a subsidiary of Golden Agri-Resources, as its crude palm oil (CPO) supplier, replacing it with another supplier for further shipments; this following allegations by Greenpeace that the Indonesian palm oil giant has been destroying the country's rainforests and peatlands through rampant deforestation.
As part of its commitment to using only 'Certified Sustainable Palm Oil' by 2015, Nestle further adds that it will put pressure on its suppliers to eliminate any sources of CPO which are related to rainforest destruction and to provide valid guarantees of traceability as quickly as possible.
Smart has denied the latest allegations and, in an interview with Bloomberg, stressed that it remains committed to applying responsible land clearing and the best practice of farming management in all of its plantations.
While Smart did not reveal how much Nestle contributed to its sales, we understand that it is likely to be pretty insignificant at less than 0.5 per cent of overall sales; the group sells most of its CPO to customers in China and India, where demand for CPO is expected to track the rapid urbanisation in these countries. As such, the financial impact from the latest development, if any, will probably be very limited for Golden Agri, although Smart may suffer some minor setback to its reputation.
We believe that the adherence to guidelines laid out by the Roundtable for Sustainable Palm Oil (RSPO) will become more important as the Nestle development suggests that businesses are paying more attention to 'green practices'.
However, the push for full RSPO-certified CPO is still expected to be quite gradual; a Dow Jones report estimates that the total amount produced through sustainable methods is still quite small at 1.5 million tonnes, compared to the 45 million tonnes of annual CPO output globally.
As such, we continue to remain upbeat about Golden Agri's medium-term prospects and maintain our 'buy' rating and $0.66 fair value. BUY
Another major customer off the list: According to a Bloomberg article, Nestle, the world's largest food maker has cut Golden Agri as its palm oil supplier amidst fresh allegations from Greenpeace that the company has unlawfully destroyed rainforests for palm oil plantations. Nestle is amongst GGR's top global customer list. Greenpeace says it has “evidence that Sinar Mas (GGR’s parent company) is breaking Indonesian law” and ignoring international environmental commitments. Nestle reiterated its commitment to use only certified sustainable palm oil by 2015. According to Greenpeace report, Kraft is also said to have cancelled its contract in early 2010, while Sainbury’s and Shell have stated that they will not buy palm oil from the company. • Impact on Golden Agri: This news comes 3 months after Unilever suspended a US$33m palm oil supply contract with GGR which was estimated to impact about 2-3% of the company’s FY10E revenue and earnings (Golden Agri-Resources Ltd: Unilever suspends palm oil purchase dated 14 December 2009). According to management, Unilever was the largest industrial customers while other industrial customers, like Nestle, account for less than 0.5% each of group revenue. • Compliance with RSPO guidelines gaining importance: The recent allegations from Greenpeace have been centered around Sinar Mas entities signaling the increasing importance of RSPO certification or compliance with RSPO guidelines. We believe the implications may be far-reaching as major food makers continue to take a more stringent approach in their procurement process, especially for those in the EU. EU is the third largest palm oil importer accounting for 14% of global palm oil imports. • Maintain UW on GGR: We remain concerned that GGR’s plantation practices may result in more contract cancellations. In Singapore, we reiterate our preference for Wilmar. We also like First Resources for its strong organic growth upstream with estimated EPS CAGR of 17-20% for the next 3 years. First Resources sells its CPO mainly to palm oil processors/exporters so it has lower risk, so long as it complies with RSPO guidelines as it does not deal directly with the food manufacturers. Within the region, we are also OW on Astra Agro and London Sumatra in Indonesia; Sime Darby and KLK in Malaysia (prefer SIME).
0.56 seems to be holding well. Friday we may see some movement (likely upside) since the last trend was up. Mind you the price action hasnt breach the lower support of the uptrend channel yet.
*Reporting Currency in USD Important: ShareJunction obtains our finance data from a third party. Check financial year before use. EPS values are recorded up to two decimal points.
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