Geoff Gannon July 1, 2019 Stock Ideas

United Plantations: A Low-Cost Palm Oil Producer with 11 to 17% Returns on Equity and Excellent Capital Allocation

by WARWICK BAGNALL United Plantations Berhad (KLSE:UTDPLT, UP for the sake of brevity) is an integrated palm oil plantation, milling and refining company (plus a small coconut plantation). It’s currently too expensive for me to buy but it is a company that I would like to own if the price ever drops to an acceptable level. Superficially, there are a lot of reasons why palm oil companies look like a bad investment. Like all agricultural commodities, the price of palm oil fluctuates a lot. There’s...

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