Dekel Agri-vision Share Discussion Threads

[cheshire man] 16/3/2017 12:46

23---29p target price on these, could see a nice run up to finals :-)

[empirestate] 16/3/2017 12:07

Good to see some positive action, would be nice to get over resistance of 13.5.
Q1's and finals in a few weeks, hopefully an update on installation of the press before then in order to push us higher.

[rivaldo] 15/3/2017 12:30

Good summary from hereandnow on another bb this week (hope he doesn't mind me copying)....

"Ludicrously cheap

I have been topping up here the past few weeks. So cheap. They have achieved all of their corporate goals last year. Debt refinanced, partner bought out, investment in production efficiencies, first dividend offered. January stated to be showing good production, CPO prices 20/30% higher than a year ago. Company heading for EBITDA of @8/9 million this year, no tax….if you put the company on a modest PE of 10, we should be a £60/70 million MC company and a share price north of 20p. Market will catch up one day…

And as a bonus, easy expansion available and planned in financed from profits, acquisitions being considered as are special dividends. DKL is an M&A target and is close to gaining RSPO certification"

[empirestate] 10/3/2017 19:33

Good to see stock being bid for at last.
Still have plenty of time till we see numbers so hopefully positive share price momentum can be maintained

[rivaldo] 10/3/2017 15:03

Making a bit of a move now, continuing the general upward trend since last August.

[cyfran101] 07/3/2017 19:20

It's possible that future expansion plans require clarity before investors take an interest. The economics of the current plant appear to be doing fine.

[113mike] 07/3/2017 13:26

I know what you mean... would've thought the div in itself would've sparked some share price strength!

[empirestate] 07/3/2017 11:40

Q1 production results in 4 weeks time and hopefully final results in 5 weeks. If the final results are not enough to see some positive upside momentum in the share price i may well throw the towel in.

[rivaldo] 06/3/2017 12:34

The CPO price is now $750, down from the $800+ highs, but still much higher than it was through all of H1'16 and indeed until mid-August'16. This time last year the price was only around $650, and it was $560 at the start of 2016..

[rivaldo] 02/3/2017 11:07

Nice move - 115,000 shares just bought at 11.5p.

[rivaldo] 22/2/2017 13:36

Positive stuff re CPO prices from REA Holdings' trading update yesterday:

"The CPO price, CIF Rotterdam, edged steadily upwards through 2016 from an opening price of $570 per tonne to close at $801 per tonne and has traded in a range between $770 and $860 per tonne since the beginning of 2017. It is widely expected that prices will remain around current levels at least for the first half of 2017. Beyond that much depends upon soya crops but with CPO stocks depleted as a result of the poor 2016 harvest, there is a reasonable expectation that prices will continue at remunerative levels through the second half of 2017"

[bad gateway] 21/2/2017 09:54

Yes you're right its 11 million altogether not each. Looks like the "11 million each" in the first paragraph was a typo. States further down its 2m each and 5m for senior management. Not what I originally thought at all.

[chadders] 21/2/2017 09:43

Double post

[chadders] 21/2/2017 09:42

I reckon it's 11 million total not each, issued at a premium as per the fund raise - not an average over the last few days as is often used. Clearly they must believe there is upside from here.

[rivaldo] 21/2/2017 08:25

The total options in issue are only 6.7% of the total shares in issue even after today's issuance, so the total dilution is pretty small.

I agree that there should be further criteria, but these are evidently mainly rewards for having got the business into shape so well to date. The good news is that they're worth nothing until the share price goes above 13.25p, and for them to be worth anything serious for each of the grantees the share price will have to be at least 20p.

[bad gateway] 21/2/2017 07:28

Dunno but 11 million options each at 13.25 seems a bit cheap given theres no performance criteria attached.
Makes trading seem daft better to just train as a ned and wait to jump on an aim gravy train.

[rivaldo] 20/2/2017 08:37

CPO prices remain high at $795.

Meanwhile, here's a nice summary of DKL from Northland Securities' February markets summary just out:



"DekelOil plants seed for dividend growth

Oil-palm plantations

Dividend

Oil-palm plantations operator DekelOil is paying a maiden dividend following its move into profit in 2016. A distribution of £500,000 is promised, which is equivalent to 0.17p a share. That should be covered around five times by earnings per share. There is a scrip alternative and some of the directors are going to take part of the payment in shares so the final cash outflow may be lower. The plan is to have a progressive dividend policy.

Earnings per share are expected to more than double in 2017 but dividend growth is more likely to be around 10%.

DekelOil is able to pay a dividend because the outstanding capital notes were converted into 12.6 million shares at 13.25p each – a 10% premium to the then market price in January. These capital notes were issued in 2010, prior to the company’s flotation in 2013.

Business

When DekelOil joined AIM less than four years ago it raised money at 1p a share (10p a share after a subsequent ten-for-one share consolidation). DekelOil owned 51% of the Ayenouan palm-oil project near the coast of Côte d’Ivoire and its partner Siva Group had invested €8.3m in the project. The joint venture company held rights over additional land in the Guitry region of Côte d’Ivoire.

The plan was to build a crude-palmoil extraction mill with an intended capacity of 70,000 tonnes a year and construction was completed at the end of 2013. In 2014, the national government granted 100% exemption from corporation tax for profit
generated from the mill up until the end of 2026. A kernel-crushing plant
was subsequently added.

Over the past year, DekelOil has taken its stake in the joint venture to 100%. In 2016, revenues increased by 12% to €26.1m. Crude-palm-oil sales improved from 35,573 tonnes to 39,498 tonnes but the average price fell by 5% to €575/tonne.

However, prices have been rising and they reached €700/tonne at the end of
2016. The kernel-crushing plant is producing higher volumes than expected. Net debt is estimated at €19.6m at the end of 2016, falling to €17.1m at the end of 2017. Lower capital expenditure should mean a sharper reduction in debt in subsequent years.

DekelOil broke even in 2015 and it is expected to make a 2016 pre-tax profit
of €2.6m, although this is much lower than originally expected because of
poor weather later in the year. The dividend announcement suggests that management is confident that the plantation’s performance will continue to improve. The 2017 pre-tax profit forecast has been reduced from €7.9m to €6.5m. The shares are trading on seven times prospective, non-taxed 2017 earnings, although the multiple
does depend on the euro/pound exchange rate. DekelOil has made impressive progress over a four-year period and there is more growth to come."

[113mike] 09/2/2017 09:26

Be nice if it soon started the move up to 20p+!

[cheshire man] 09/2/2017 09:13

Not forgetting Broker target ,,,,23 & 29p which is very reassuring :-)

[chadders] 09/2/2017 08:56

A bit more background reading last night so another top up for me this morning. Very competent clear thinking management delivering on promises.

[chadders] 08/2/2017 14:00

Thanks rivaldo. Still very positive

[rivaldo] 08/2/2017 12:42

The CPO price has dipped a little from the highs, but is still at $805 - which compares to $700 at 30th June last year and $615 a year ago.

[mach100] 07/2/2017 21:55

Yes I think there is more to come this year. The dividend though relatively small will set it apart somewhat for an Aim commodity company. DKL does need to get to grips with production and move towards full capacity.
But this company has been built up from nought and there is a lot of intrinsic value in its assets and geography. This value will inevitably be unlocked over time as income increases, the assets enlarge and predators move in.
3 weeks to high season beginning so plenty of positives to come. DKL does imv tend to peak in Easter and September ( on past performance)so we can hope for a run up in the next 2 months.
13p is current support but once through that we can test 15p as the next strategic level.

[113mike] 06/2/2017 19:10

Good luck G78..lets hope 2017 is a great one for DKL and for all of us!

[chadders] 06/2/2017 15:15

Cheers 113mike. Hoping for good things to come.