THE TIPSTER
WITH world soft commodity prices rising, there is one that has been difficult to get exposure to – rice. Origo, a private equity investor in China, has acquired approximately a 25 per cent stake in China Rice. This firm, a processing and distribution group, plans to create a nationwide brand associated with good margins.
Exposure to the rice market must surely be a good thing, with rising Asian demand and dwindling fresh water supplies. It takes 5,000 litres of water to grow a kilo of rice. Spreadex offers a June price of 41.1p-44.54p.
Entertainment One produces the Peppa Pig cartoons, which generated over £200m in retail sales in 2010, making it the best selling cartoon character. Broker estimates are positive, and could be somewhat conservative if Peppa Pig takes off in the US, where ETO has an agreement with Nick Jr, a kids channel. ETO isn’t a one trick pony though, with other popular cartoons such as Ben and Holly’s Little Kingdom and police drama Rookie Blue. Spreadex offers a June quote of 151.3p-153.9p.
AIM-listed oil explorer Gulf Keystone Petroleum saw its share price rocket to an eight month high after significant initial oil flows from its Shaikan block well in Kurdistan. The stock has since moved over 20 percent to 153p, however more detailed results will show the true valuation of the well. With these fundamentals in mind there could be further upside. Capital Spreads quotes 151.8p-153.0p.
The impact of the Japanese earthquake, tsunami and ongoing nuclear crisis is starting to be felt on a truly global scale as supply chain disruption begins to bite. Reports are now circulating that General Motors has had to suspend production at some of its factories owing to a parts shortage but with the shares now trading below last year’s IPO price, will cavalier traders be tempted to seek the buying opportunities? Current IG Index price on GM is $31.40-$31.48.