On 5 June 12, I did a blog post on whether it was time to go long on Wilmar. Yesterday, someone asked me as well if it is now a good time to go long on Wilmar.

To any seasoned market watcher, Wilmar’s share price must look quite tantalising as it hit a low of $3.41 on 14 June 12. That was a good¬†43%¬†lower than its one year high of $5.99 a share.

Now, if we should think of a reason for the decline in price, it is clearly because of the company’s disappointing earnings. The company’s crushing business is likely to remain very difficult for some time to come. In fact, the CEO said it could take a few years for excess capacity in China to be absorbed. As this business is about 25% of the company’s revenue, a decline in its share price is to be …