Wilmar share price on the way to $10?

What an explosive run for Wilmar share price! On the back of record crude palm oil prices (CPO), Wilmar share price soars to high heavens. Indeed, the return of the form of Wilmar share price is timely as investors await the release of the highly-anticipated full-year financial results, which will be released on 22 February 2021.

In 2020, Sembcorp Industries was the best performing Straits Times Index (STI) component. I had made a profit of $17,500 from that counter and rebalanced my portfolio by investing in Wilmar. On the basis of the raging form of Wilmar share price, I am confident that Wilmar will be the best performing STI component in 2021.

Wilmar share price

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Question now is: will Willmar share price storm to $10? This is definitely not a crazy wild guess with no investment basis. Net profit for 9MFY2020 was already US$1.14 billion. If we factored in the US$2.01 billion proceeds received from Yihai Kerry Arowana (YKA) and the 4th quarter net profit, the total net profit could be US$3.5 billion, which translates to S$4.62 billion (after currency translation). Under such circumstances, the EPS will be $0.73. If Wilmar share price hit $10, the P/E will only be 13.7, which is really reasonable for a high growth stock.

Given that Wilmar share price is currently trading at $5.25, there is still window of opportunity for investors to enter before the valuation gap narrow. It seems that the big boys have also jumped on the bandwagon in recent weeks, giving Wilmar share price a strong boost as Wilmar share price smashed past the critical $5.00 mark in the first week of the year. For Wilmar share price to rally in such a short time, the big boys should have a hand in it.

Wilmar share price turned bullish as the counter was among the top 10 institution net buy list in December 2020. This indicates that fund houses are buying this stock, possibly in anticipation of the robust full-year financial results. In view of this, I think there is still time before Wilmar share price begins to peak.

The return of the big boys certainly gave Wilmar share price a vital boost. Prior to this, Wilmar share price had been in a wretched form, falling from a high of $4.90 in August 2020 to a low of $4.00 in October 2020. To rub salt into injury, Wilmar share price failed to gain much momentum even after the management bought back 44.97 million of shares as of 6 January 2021 and insider purchases by CEO Kuok Khoon Hong.

Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am vested in 10,000 shares of Wilmar. Henceforth, this article may be biased towards Wilmar share price. In view of the volatility of Wilmar share price, investors must exercise caution when trading this counter.

Wilmar share price in blaze of glory

It seems that Wilmar share price is destined to reclaim its past glory as the stars are [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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Updated: January 31, 2021 — 10:27 am

2 Comments

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  1. In mid December, you were talking about $5/share. One month later, you are expecting $10/share. LOL

    Anyway, last time I said it would go up anytime soon. Gerald, now you should have a decent profit now.

  2. Hi Leo,

    Yeah, I had underestimated the ability of Wilmar share price and had set a conservative target price of $5. To be honest, I doubt it will hit $10 but $7 or $8 could be a strong possibility. Yup, sitting on $5000 profits. Nothing to shout about. Haha.

    Regards,
    Gerald
    https://sgwealthbuilder.com

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