Golden Agri is suffering from a heavy selldown. Anyone knows why? Wondering if 69 cents now is a good entry point for me...... :-) Or better to wait until perhaps 66?

Golden Agri has just touched 77 cents. It's been a fairly quick recovery. Mardi Tan, you still averse to the stock?  I read that CPO prices are firming up because of the weather. 

Looks like Mardi didnt get caught!

Dow Jones today :
Golden Agri (E5H.SG) is the worst-performing STI component and the top-volume play, dropping 4.8% to S$0.595, its lowest since October, with nearly 22% of shares changing hands, sharply  underperforming the STI''s 0.6% decline and sector peers.

Large trade sizes suggest institutional players are active.

While GAR hasn''t any fresh news, its status as a highly liquid Indonesian palm-oil play could  
be weighing, with Citigroup noting investors pulled US$825 million from Indonesia''s market in May, with Indonesian shares dropping sharply.      

Citigroup notes foreign ownership of MSCI Indonesia stocks has fallen to US$83 billion, 1Q11 levels, from July 2011''s peak of US$107 billion. Fund shifts ahead of Felda''s IPO, expected to show a sharp first-day pop amid strong demand, could also be weighing.

Beware of this counter, last time it was under Asia Food and Properties. Indonesian company. Boss is Indonesian rich man but company always raise capital from market.

We cannot judge this company based on PE.

Dividend yield is very very very low. 

above 70 cents is not worth for it.

Hey just noticed that Golden Agri touched 69 cents, breaking thru 67-barrier.
I have been reading up on this --- seems like a good stock. And there's Bloomberg report which is positive on the outlook:
Golden Agri Says Palm-Oil Output to Climb as Estates Expand ...

If the party is on tomorrow, it won't be a 2 cents gain le.

I not greedy... I not going long for any stock, take profits and run...

If there is 1 more round sell-down, then i accumulate, if not, opp will come, I still young... hahah

Good luck

The wall of 67 cents has indeed come down.

It hit a high of 68.5 cents as of 1300hrs, I believe that there should be 1 more leg of gain for this counter.

1) STI should still gain tomorrow, judging by the futures of US and european markets, and the DAX has cross 6000 again, DOW if it is to rise again tonight, will further strength the support level at 12000. News out of europe is generally still positive, Japan and US has also good news over the weekend/ today. All these should provide positive momemtum.

2) Golden Agri, being the one of the most actively traded component stock of STI should track the market higher, given the high liquidity and the correalation of STI index.

3) Golden Agri is low on valuation as compared to the STI index stocks, be in in terms of trailing of forward PE. Compared to commodity peers, like Wilmar, Noble, Mewah, Golden AGri results is most impressive.

I would take profits if the party is still on tomorrow, because I see Iran as a possible spoiler going forward. With so much focus on Europe, People seem to forget about the supercommitte and the looming Iran problem. I believe the supercommittee will underdeliver, enjoy the party while it lasts.

Good luck

Golden Agri has indeed done well in 3Q but the stock price is stuck at 66 cents. Nonetheless, this business deserves our admiration and I'm considering buying the shares.

In 9M2011, netprofit hit US$520 million, a 105% increase year on year. Palm products output and average CPO prices were at historical highs.

Yes, greenrookie: Golden Agri does look attractive ....

Excellent article by FT for yr enjoyment:

>>
Flayed by environmentalists, denounced by animal lovers and abandoned by western consumer products groups, Indonesia’s Golden Agri-Resources ought to be on its knees. So why is the country’s biggest palm oil producer by sales achieving soaring sales and record profits?

Singapore-listed Golden Agri looked in serious trouble in mid-2010 as western consumer products groups such as Nestlé, Unilever, Burger King and Kraft Foods stopped buying its palm oil products, worried by a clamorous boycott campaign by Greenpeace, the environmental activist group.

Greenpeace pulled no punches, producing a series of hard hitting reports on the group, which it refers to by the trade name Sinar Mas. The content is complex and disputed, but the argument is clear: Golden Agri destroys virgin forest, releases trapped carbon and threatens rare animal habitat.

Faced with this pressure, Nestlé and other western companies quickly bowed to Greenpeace’s boycott demands. Just over a year later, though, Golden Agri looks more victorious than vanquished.

Six weeks ago, the group reported an increase of 166 per cent in net profit to $411m for the six months to June, compared with the equivalent period for the previous year. Revenue was up 127 per cent to just over $3bn. Earnings before interest, tax, depreciation and amortisation rose 115 per cent to $561m, roughly double last year’s equivalent, and nearly four times the 2009 level.

The conclusion seems to be that the Greenpeace campaign had little effect on Golden Agri, in spite of its success in pressuring western food manufacturers to stop buying. The truth, though, is more nuanced.

Golden Agri and other palm oil producers are benefiting from a historic run-up in prices that has changed the economics of the industry. With crude palm oil trading in Kuala Lumpur at about M$3,064 ($992) a tonne on Tuesday the plantation groups are making nearly M$2,000 a tonne more than their costs of production – an awfully big margin.

Full article by Financial Times at: http://www.ft.com/cms/s/0/82d2d6e2-e33f-11e0-bb55-00144feabdc0.html#axzz1cwBiayot

With the referendum vote scrapped, I am prepared to put some money (from sale of Eratat) into work again. I notice that there are some blue chips at sub 4 PE, 2 caught my attention DBS and golden agri.

I dun have that much capital to "play" DBS so case closed. Golden agri is trading at trailing PE of 3.6. It's worth a punt.

Why, 1H results has been outstanding, withs strong growth recorded. If you follow the company recent announcement, unilever has resume purchases of palm oil, it's subsidiary SMART in Indonesia has reported strong Q3 growth in indonesia.

Yes, there is some concern with weak COP prices, but if the indonesia subsidiary is doing well, that risk should be contained. Sunday times article mention annual sales value of oil palm to double over next 8 years.

Lastly, it's has been a laggard in recent days rally, it closes 1 cent lower when most of other blue chips are rallying on Friday.

It will announce it's results on Friday. If there is a earning season rally this week and next, it could be a potential short term gainer, and if market conditions are bad, you should be able to sleep well having bought an blue chip at low valuation and with the sector expected to show growth in coming years. (admin, can help with formatting too? iPad can't do paragraphing)