The communist party had the economic reform policy meeting from 9 - 12th Nov 2013....They mentioned that they will allow "markets" to play a bigger role..
Hmm......what does that mean?? i am just sharing some thoughts:
Do you know that China is a centrally controlled country? They control how many children they can have...etc....for business..they control the selling prices from cotton, palm oil, sugar, flour...etc mainly daily staples...Other countries had to deal with increasing commodities prices due to inflation...but China control the selling prices ....protecting their economy from its impact....
BTW, they are lifting the one-child policy and a stroller company just rallied 7% in a day.
Now, seems like they are going to allow the market to price (the commodities) themselves.... if this is true...Wilmar and Noble would fly......especially Wilmar, who had been unable to pass the rising costs of production to their customers.....In the future, they might be able to rise price....btw their net profit margin is just a few %...so even if they just rise the selling price a little , will have a big impact on the profits!!!
wait and see.
If you had bought plantation stocks when i mentioned earlier(17th Oct), you should be sitting on quite some profits!!!
Come to my Free 2 hour workshop on stocks investing! A few page downwards, i shall make more announcements shortly....stay tuned.
cheers,
jason.
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