Rubber Plantation Companies- Please comment

nkalansu · 1 Rubber Plantation Companies- Please comment Fri Dec 09, 2011 6:02 pm

nkalansu

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Hello investors............

What is your average cost of KGAL?

What do you think the best rubber manufacturing Plantation company in CSE?

Last edited by nkalansu on Fri Dec 09, 2011 8:39 pm; edited 1 time in total

illuminati · 2 Re: Rubber Plantation Companies- Please comment Fri Dec 09, 2011 8:31 pm

illuminati

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No comments from the plantation expert who thought that rubber prices would never fall !

Hawk Eye · 3 Re: Rubber Plantation Companies- Please comment Sat Dec 10, 2011 9:11 pm

Hawk Eye

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KGAL. Though the rubber prices fall KGAL has a robust strategy. One of its strength is quality. which gives the competitive edge over others. They mix their products according to changing demands.

..Kegalle Plantations PLC continued to be a preferred supplier of Sole Crepe to world famous shoe manufacturers due to its consistent quality and service....

When the market identifies its real value the price will shoot off the ceiling.These stocks under my longterm protfolio and not expecting immediate gain

Another stock caught my attention which has a potential to grow in value in future which I dont want to discuss in this thread

Slstock · 4 Re: Rubber Plantation Companies- Please comment Sun Dec 11, 2011 3:31 pm

Slstock

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KGAL is the largest RPC which produces rubber in Sri Lanka.

Yes, KGAL produces about 9% (of its overall productions) in Sole Crepe which is the higher in quality. They also have direct export of Sole crepe rubber to world famous manufacturer Clarkes Shoes Company.

"The Company also monitored the Grade Mix of Rubber to suit the demand in the market with its flexible manufacturing capability." ( Annual report)

Also note that KGAl produces more Centrifuge Latex ( 50% according to last report) and Latex Crepe ( 27%). So their prices in the world market will have an impact on it profitability.

However there is a hidden fact.

Most of their Centrifuge Latex is sold to " Richard Pieris Natural Foams Ltd". So KGAL might be getting special prices compared to market. This leads to another point. RICH. When rubber goes up RICH benefits through KGAL and NAMU. WHen it goes down , maybe RICH rubber related manufacturing can gain better profit??

Lastly, let me point out another hidden fact lot of people might have ignored. KGAL out of all the plantations companies is in a special position other than their core business. Why? They have invested 22.5 Million shares in an associate company Wink

Look at their last quarter report.

Also recently that company they invested in got their registration to start operation I heard ( to be confirmed).

Short term KGAL might effected with rubber prices comapred to last quarter. But longer term KGAL seems to still have some weapons under its hood. All is not lost I think.