Future of Plantations

salt · 1 Future of Plantations Mon Jan 31, 2011 3:24 pm

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Future of Plantation Sector

Plantation sector was one of the vulnerable sectors but is very important to economy at large, both interms of export income and employment generation.

The business model also skewed in favour of management compnaies, when bad times comes, managers are still protected while shareholders (ordinary) get a hit. Wage increse , cost of production are key to watch.

These times, ther is a boom in rubber & palm oil while there is drag from the TEA. but, god knows whats about the future.

Slstock · 2 Re: Future of Plantations Mon Jan 31, 2011 3:27 pm

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salt wrote:Future of Plantation Sector

Plantation sector was one of the vulnerable sectors but is very important to economy at large, both interms of export income and employment generation.

The business model also skewed in favour of management compnaies, when bad times comes, managers are still protected while shareholders (ordinary) get a hit. Wage increse , cost of production are key to watch.

These times, ther is a boom in rubber & palm oil while there is drag from the TEA. but, god knows whats about the future.

Yes, that why Plantations trade with a lower PE. They are seasonal and volatile to external factors than other sectors.

mono · 3 Re: Future of Plantations Mon Jan 31, 2011 4:07 pm

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slstock wrote:
Yes, that why Plantations trade with a lower PE. They are seasonal and volatile to external factors than other sectors.

I have never done really well with plantation shares. Sad

econ · 4 Re: Future of Plantations Mon Jan 31, 2011 4:41 pm

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mono wrote:

slstock wrote:
Yes, that why Plantations trade with a lower PE. They are seasonal and volatile to external factors than other sectors.

I have never done really well with plantation shares.

me too. so I am avoiding plantation now..

Rajitha · 5 Re: Future of Plantations Mon Jan 31, 2011 7:40 pm

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Well you have to calculate the Risks properly and make a reasonable decision. ATM plantation future is really bright for more4 than 5 companies( Rubber+ plam oil) compared to most of the other sectors.
Also not the mention the Prices of these stocks are at real bargain values. You can either identfy the value now and but cheap, or wait till some people start a huge add campaign to promote shares after some time when the share price has already doubled from its current value ( Like poultry ).

mono · 6 Re: Future of Plantations Mon Jan 31, 2011 7:58 pm

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the problem with plantations here is that, one good shower can ruin a rubber crop

Rajitha · 7 Re: Future of Plantations Mon Jan 31, 2011 8:18 pm

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mono wrote:the problem with plantations here is that, one good shower can ruin a rubber crop

Not really ? IT has been raining cats and dogs in the past quarter in case you forgot. Still the prices go up, and so does the profits from rubber by plantations ( the quarterly that have come out so far).

Just in case you guys are really interested in the sector and not making excuses to justyfy your already investments and not to invest in the sector I would recommend to go and read about the new rubber plantation trends and news. There are even new Rubber taping systems introducer that can collect rubber rubber even on rainy days from Sri lankan universities.

ControlFreak · 8 Re: Future of Plantations Mon Jan 31, 2011 8:21 pm

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What the heck.

I am in a "What a Walla".

CF

mono · 9 Re: Future of Plantations Mon Jan 31, 2011 8:48 pm

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Rajitha wrote:

mono wrote:the problem with plantations here is that, one good shower can ruin a rubber crop

Not really ? IT has been raining cats and dogs in the past quarter in case you forgot. Still the prices go up, and so does the profits from rubber by plantations ( the quarterly that have come out so far).

Just in case you guys are really interested in the sector and not making excuses to justyfy your already investments and not to invest in the sector I would recommend to go and read about the new rubber plantation trends and news. There are even new Rubber taping systems introducer that can collect rubber rubber even on rainy days from Sri lankan universities.

to the best of my knowledge, it hasn't been raining cats and dogs where plantations are located. and that little plastic hat mechanism doesn't work too well when monsoon hits. also the current high price for rubber world wide is partly because rains obliterated the Indian & Indonesian crop. And i remember an article on investnow.lk saying that the tea harvest for the first 2 weeks of january was very low due to weather conditions. it was published by mission, he always publishes plantation news. And i think the plantations suffered horrible losses in 2009 because of reduced output due to weather(not so sure on that one though). So there is no way anyone can argue that weather cannot adversely effect plantations.

I'm not saying Rubber + Palm oil won't show killer profits this quarter they will and smart people who invested in rubber heavy plantations that don't have massive tea amounts of tea will surely make money and good money. But it's difficult for any of these plantations to trade beyond a PE of 12 without significant pushing by brokerages.

on the positive side the rising oil prices would only mean that more an more people will resort to natural rubber resulting in higher demand blah blah blah.

And BTW, I do have a significant holding of NAMU. Wink

milanka · 10 Cost of Manual workers May Go up Tue Feb 01, 2011 10:53 am

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A struggle for a pay hike for the estate workers will be launched in the near future while demanding a daily wage of Rs. 700, the Ceylon Estate Workers Union said today
Source : Dilymirror.lk of 31st Jan