gretel
16 Jan 2017
Cantor reiterate Buy and 29p price target this morning:[link]
gretel
16 Jan 2017
Good news re loan note conversion Good to see (1) conversion at 13.25p per share, and (2) the very positive director's comments, which bode well, particularly regarding profitability, expansion and dividends:[link] Executive Director Lincoln Moore said, "Over the past 12 months DekelOil has overhauled its balance sheet by significantly reducing its overall debt outstanding and materially decreasing the interest rate on its remaining debt. This has all been achieved due to the ramp up in our operations and the resulting increase in the Company's profitability. We are well placed to consider expansion opportunities, continue the pay down of remaining debt as well as consider the distribution of regular dividends to our shareholders."In addition, a poster elsewhere has reported excellent growing conditions for DKL's geography:"Reported in q4 by the coco farmers with bumper rains and hot sunshine bodes very well for our production figures and a bumper q1 and q2 crop all sales in euros at 18 month high prices, 2017 is going to be a very strong year indeed"
kolwezimudele
13 Jan 2017
Palm oil Not to put a dampener on things, but exceptionally heavy rainfall in parts of Asia this year might result in a bumper crop that pushes the price of palm oil downwards.
gretel
13 Jan 2017
More new highs for CPO price The CPO price was up to new 18-month highs at $830 on Wednesday's close.....[link]
gretel
10 Jan 2017
Moving up, Beaufort have 23p target A bit of an uptrend developing.Beaufort Securities have a 23p target price and conclude as follows this morning - good to see DKL highlighted as a Brexit winner as well:"Our view: This acquisition has been secured on terms that are value accretive for its existing shareholders. Equally as important, it gives DekelOil 100% ownership of its producing and profitable palm oil project at Ayenouan, while shareholders will also enjoy all the benefits of new management initiatives going forward. Back in November, the Board also detailed a series of investments to facilitate its move to high volume production, all of which will be funded internally from excess funds following the recent debt refinance and internal cash resources. These are expected to improve operating margins, de-risk operations and provide more flexibility with sales pricing going forward.The ability to make these investments, without impacting the prospect of returning capital to shareholders in the form of dividends, is reflective of DekelOil's strong balance sheet and the Board's commitment to proactively manage performance and risks on behalf of shareholders.Importantly, and also as previously noted, DekelOil is a Brexit winner with the appreciation of the Euro against the Pound of well over 10% post Brexit, which translating into higher Sterling earnings. Having positioned itself so, Beaufort believes the Group will be able to support its long-term operational ambitions while also producing a sustainable surplus. As these are realised, shareholders can expect to be rewarded by management implementing a formal dividend policy which, in itself, remains key to investor confidence in what is otherwise an obviously undervalued investment. Beaufort retains its Buy recommendation on the shares and repeats its price target of 23p for the shares."
gretel
03 Jan 2017
Still looking cheap imho This should be a good year for DKL assuming palm oil prices remain reasonable at minimum, and if they remain at the current high prices it should be a VERY good year.Cantor's forecasts remain at a historic 1.19p EPS for 2016 and 2.43p EPS for this year.
gretel
15 Dec 2016
Palm oil at 2-year highs now The CPO price has rocketed up to $815 now. That's the highest since August'14.I topped up with a few more.
BBanker
07 Dec 2016
Re: Ticking up today With palm oil prices on a strong rising trend and the company's plans to squeeze more out of the crop it looks as though we are poised to continue to see more blue than red in the weeks ahead
gretel
07 Dec 2016
Ticking up today Nice 400,000 buy at 11.98p this morning. The CPO price continues to rise and was at $780 at Monday's close.
gretel
15 Nov 2016
Cantor increase target price to 29p Great new article in the Cambridge News - and Cantor's have a new 29p target price:[link] conclusion says it all: "Although the shares are up a touch this morning to 11.8p, there should be a long way to go if things pan out as expected as the business looks increasingly de-risked and which sees broker Cantor lifting its target price to 29p. The broker is anticipating full year 2016 pre-tax profits of €3.8m with EPS of 1.4c followed by €7.8m pre-tax profit next year which will return 2.8c and rising to €10.1m in 2018 with 3.6c EPS. That sees the stock trading on a PER of 9 but which falls to a lowly and highly attractive 5 suggesting the stock is substantially undervalued at these levels. Looking beyond into the 2018 numbers, the PER drops to below 4, which looks extremely cheap given that the main risk to hitting the numbers is a variation in the palm oil price. Even allowing for that fluctuation, DekelOil's news provides for a nice slice of downside cover in this area and further highlights the potential of what remains an under the radar play."
gretel
15 Nov 2016
Beaufort Securities see 100% upside Beaufort Securities retain their Buy and have a 23p target here - it's great to hear talk about a dividend, as none have yet been incorporated into forecasts. If DKL were to announce a maiden dividend that would really grab the market's attention: "Our view: More positive steps from DekelOil as it moves toward high volume production. Positively, all these investments will be funded internally from excess funds following the recent debt refinance and internal cash resources of the Project. These capital investments, which have been in the Board's sights since the Mill first became operational, are expected to improve operating margins, de-risk operations and provide more flexibility with sales pricing going forward. The ability to make these investments, without impacting the prospect of returning capital to shareholders in the form of dividends, is reflective of DekelOil's strong balance sheet and the Board's commitment to proactively manage performance and risks on behalf of shareholders. Importantly, and as previously noted, DekelOil is also a Brexit winner with the appreciation of the Euro against the Pound of well over 10% post Brexit translating into higher Sterling earnings. Having positioned itself so, Beaufort believes the Group will be able to support its long-term operational ambitions while also producing a sustainable surplus. As these are realised, shareholders can expect to be rewarded by management implementing a formal dividend policy which, in itself, remains key to investor confidence in what is otherwise an obviously undervalued investment. Beaufort retains its Buy recommendation on the shares and repeats its price target of 23p for the shares."
gretel
14 Nov 2016
Good RNS this morning, announcing investments from the "strong Balance Sheet" to improve efficiency, mostly in time for the upcoming new harvesting season:[link] summary elsewhere which puts today's news in perspective - item 1 alone adds €5m to the m/cap against a current £28m m/cap:"Good news this morning. The first 2 investments were discussed at the AGM. Item 1 should add a decent amount to the reported profit figure next year, whilst items 2 and 3 are more about risk reduction. Item 2 may add to profit, as more CPO sales can be deferred into a later month when CPO prices are rising. If payback on item 1 is one year, then EBITDA profits should be boosted by about €500k next year. At a conservative multiple of 10, this should add €5million to the market cap."
BBanker
14 Nov 2016
Good news week The company's plans to increase margins and the rise and rise of palm oil prices bodes very well for 2017. A good opportunity to buy in to a promising future.
gretel
10 Nov 2016
Palm oil prices at high levels CPO price up again to $752.5 at Tuesday's close, and H2 prices have been on average significantly higher than H1's.Apparently CPO prices have also hit a 2.5 year high in Malaysia due largely to supply worries caused by El Nino.
gretel
01 Nov 2016
Cabtor increase their forecasts Cantor Fitzgerald have increased their forecasts as follows judging by Hemscott and Share.com:this year : 1.23p EPS (from 1.18p EPs)next year : 2.42p EPS (from 2.28p EPS)DKL really is looking very cheap at 11.75p, especially given the current rise in CPO prices to $755.
