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KLK ? one for the contrarian
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domperrier
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15-Dec-2024 11:58
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I have traded this co. in & out many times since 2011, collecting its dividends along the way. It has been a range between 20 & 29.30 ever since breaking that round number in late 2010. The most that can be hoped for is range trading within those numbers for those who missed the spectacular rise from 4.00 to over 20.00 from 2004-2010. |
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i4value
Senior |
15-Dec-2024 11:08
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Bursa plantation company, KL Kepong (KLK) returns over the past decade has shown a declining trend. And it currently falls into the Turnaround quadrant in the Fundamental Mapper. The Fundamental Mapper gives you a first-cut picture. You probably would not consider KLK looking at just the Fundamental Mapper. But digging deeper, the main reason for the declining return is because KLK has been expanding into the manufacturing sector (oleo and related chemicals).This expansion enabled KLK to capture additional value but with lower returns. So while it got bigger, the returns declined. I suspect that as the Group improves its efficiencies, we will see a turnaround in its return. The current market price of KLK reflects a significant discount compared to estimated intrinsic values. That is why I think this picture is good for the contrarian investor |
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