Golden Agri

Golden Agri: OCBC says the worst may not be over, despite its share price tumble to an intraday low of $0.44 on 1 Dec. Besides posting the worst set of 3Q14 quarterly results since 1Q09 which net profit melting by 86% to just US$4.4m, the uncertainty over crude prices could continue to weigh on CPO prices, mainly due to the biodiesel link. In addition the house sees lower demand for CPO during the winter months, as palm oil solidifies at higher temperatures compared to other veg oil, making it less attractive to consumers in temperate countries. With out much positive catalysts, OCBC keeps its Sell rating , with possibility for stock to slip to $0.40 before stablising.