the end of the world is nigh..exclamation mark.., page-11

re: no new licenses The ban on new licences will probably be temporary. The country has reserved a proportion of palm oil production for biofuels feedstock purposes and this amount of palm oil is not fully accounted for by the production plans of approved biodiesel producers in the country. In order to fully utilise that quota more licences will be issued OR there will be big expansions in capacities of existing licencees.

However the main issue is likely to be the revision of forecast revenue due to decreasing fossil fuel prices. In that regard, producers with economies of scale like JPR will have an advantage due to fixed costs being a smaller proportion of their revenues. Having said that the competitiveness of malaysian biofuels producers is highly sensitive to changes in the price they can get for their products AND palm oil prices which have been steadily and rapidly increasing since Mission and Sterling did their forecasts.

This could account for the decreased interest in JPR at the moment. However we should take into account that the ultra low forecast multiples (2-3?) that MBT and SBI are trading at is due to the possibility of such adverse events and that there is still a fair bit of margin left to make a viable operation.

I hold and will continue holding.