STI Index Review - Mapletree Logistics In, Golden Agri-Resources Out

Golden Agri & Wilmar – Avoid till the Smoke Clears

Golden Agri: El Nino (CPO Pricing Catalyst) Downgraded; Shares Vulnerable to Pullback

GGC: Biodiesel B10 to Support Company’s Earning by 2020E

Eagle High Plantations: ‘A Return to Profits’…but Deleveraging to Be Prioritised

Over 25-yrs in Global Materials & Soft Commodities

Charles Spencer

Alpha Factors

Equity Bottom-Up

<p><strong>INVESTMENT CONCLUSION: </strong>An improved outlook for CPO pricing should support the shares into the S$0.30s.  Pricing expectations have improved as a result of strong biodiesel demand outstripping low production.  CPO prices have jumped 33% from June, yet <a href="https://www.smartkarma.com/entities/golden-agri-resources-ltd" target="_blank" data-smartkarma-citation="entities:1142:1" rel="noopener">Golden Agri Resources (GGR SP)</a> shares are down 20% in the same period. </p>

INVESTMENT CONCLUSION: An improved outlook for CPO pricing should support the shares into the S$0.30s.  Pricing expectations have improved as a result of strong biodiesel demand outstripping low production.  CPO prices have jumped 33% from June, yet Golden Agri Resources (GGR SP) shares are down 20% in the same period. 

Golden Agri: Pricing Up / Stock Down:  Trading Buy