CBIP may have a bullish breakout

CBIP, which is involved in the production of patented palm oil mills, named 'Modipalm Continuous Sterilisa-tion mill' as well as owning an oil palm estate of about 3,720ha and also managing about 5,936ha oil palm land in Miri, Sarawak.

CBIP had announced its results for 4Q2008 ended 31/12/2008 at the end of February. Its net profit dropped by 26.4% q-o-q to RM13.8 million while turnover increased by 16.4% to RM136 million. The lower net profit was attributable to lower contribution from the plantation segment, resulting from the significant decrease in average selling price of FFB during the quarter.

Compared to the same quarter last year, its net profit was 5.4% lower despite a 48% higher turnover.



CBIP has broken above its medium-term downtrend line resistance at RM2.00 today. As at 4.15 pm, the share price is up 15 sen to RM2.13, on volume of about 7000 board lots. This could be the start of an upleg for CBIP.


Chart: CBIP's daily chart as at Mar 24, 2009(source: Quickcharts)

By on the above, CBIP could be a good BUY for medium-term investing.

For more, check out these two recent reports from the Edge (here & here).