The recent downturn in investment has been a thorn in the pockets of investors worldwide, not excluding hedge fund giants such as Melvin Capital which closed down during the period after their Gamestop was short-squeezed leading to billions of dollars in losses.
On the other hand, there are about 3 cheap stocks that every investor should look into, especially in the downstream and commodity space. They are Global Palm Resources, Jiutian Chemical Group Ltd, and SHS Holding Ltd.
Global Holdings Resource is a company founded in 1991 with a landmark of 43,349 hectares of land, situated in Indonesia with an interest in sales of fresh fruits and cultivating, and processing palm fruits oil as well as crude oil and palm kernel oil.
In the year 2021, the company witnessed 88.2% of good trade on palm oil and a recent report depicts that the company amassed up to 91% in revenue and an annual gross margin of 33.8% in the year 2020. The company promises a good increase in revenue after the recent removal of palm oil export in Indonesia.
Jiutian Chemical is also another company to look out for as it was listed on the mainboard on the Singapore Exchange Securities Trading Ltd in 2006 and the catalyst of SGX-ST in 2016. The company prides itself in the production of a variety of chemicals used as feedstock for a wide range of applications.
The company is reported to have achieved a 123% in its net profit in the first quarter of the year and a gross profit margin increase to 35% attributed to increasing commodity prices and good cost control.
Last but not the least is the SHS Holding Ltd company established in 1972 as a diversified group in engineering and construction, corrosion prevention, and energy-related businesses.
Like the first two, the company as of 2020 has increased revenue slightly by 57% to $55.2 billion through its solar innovation which is a budding market across the world.
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