Sell down of Wilmar a buying opportunity.

GMT [Dow Jones] STOCK CALL: Sell down of Wilmar (F34.SG) on worries over potential delay of Hong Kong IPO of palm oil company's China operations is buying opportunity, says UBS. Broker says timing of IPO remains largely dependent on market conditions, expects IPO to raise at least US$2.5-US$3 billion, but says company has no immediate need to raise capital. However, broker does note that extended delay of IPO into November could result in further delay as 3Q09 results would then need to be included in IPO prospectus. Reiterates Buy rating and unchanged S$7.00 price target. "We remain bullish on Wilmar as we expect Chinese cooking oil consumption to pick up on account of renewed urbanization and real consumption growth." Shares down 2.9% at S$6.32 vs STI off 0.3%. (KIG)


My buy order was triggered at 6.48 today, but I cut loss at 6.27, as shares dipped too fast after that. This usually means share price will be depressed for quite a while after that. But I will be keeping watch.

My loss: $420