New Britain Palm Oil Share Discussion Threads

[thorpematt] 24/3/2012 18:36

poombear

There's an article in this weeks IC.

I think the plant produces bakery fats :-



The ICs buy tip looks well timed IMO

[poombear] 24/3/2012 09:15

I'm new to this stock and industry, I note that the Liverpool bakery plant will be open very soon (Liverpool echo story mentioned 3 weeks). Can anybody advise what effect this new offering will have on the business, I am assuming that the products produced will have a premium value and possibly higher margin? Is there an estimation of what the increase in revenue will be once this operation comes online?

[volsung] 23/3/2012 15:02

The effects of your investment decisions

[undervaluedassets] 02/3/2012 14:07

It is just that they might be re-rated down first on the mis-comprehension.

And it is not on a low pe any more. it is on a high one.

[cisk] 28/2/2012 15:37

undervalued - you may well be right - surely then an opportunity to profit from this? Once the market works out that in fact this company is growing strongly and yet also is on a low p/e then the shares will be re-rated.

What do you think?

[undervaluedassets] 28/2/2012 13:14

New style EPS have been posted unexplained by ADVFN. looks like a calamitous fall in trading which of course it is not.

but it will put people off who just look at this years and last years numbers and nothing else.

bad for sentiment.

[undervaluedassets] 25/2/2012 10:51

market seems very confused by the results...

[cisk] 24/2/2012 12:22

absolutely stellar results. The cash generation is excellent. Undervalued, I think that the two EPS figures are due to accounting standard which reflects the amortisation of the plantation over their useful life (although I'm no accountant). I would just look at the standard figure.

Several things stand out from the results:
1) They have forward sold 25% of their annual production (if it matches last years) already
2) Cash generation is excellent and shows just how quickly they can pay back borrowings. Year started with 2.7m usd cash, ended with 55m usd cash.
3) They are doubling the capacity in Liverpool
4) They are still the only fully-traceable supplier and fully sustainable.
5) They are implementing measures like methane capture to reduce carbon footprint and generate energy.
6) As Melody says they are on a lowly pe - for the kind of growth they are reporting they look cheap
7) The dividend yield is relatively low. FY 30c - approx 19p - equates to around 2.2% gross yield. There is certainly scope to increase this in the next FY - but NBPO have shown a very prudent approach to dividends (suspending them when they did a large acquisition in the last financial year), so I'm not expecting a huge increase. Indeed, personally I would rather they reduce borrowings than to increase dividends.

Of course the big negatives are a) palm oil price and b) weather. They are heavily linked of course (i.e. bad weather = bad harvest = higher price - assuming all other things being equal which never happens).

I'm happy to add a few here and there, benefit from the hopefully rising dividend and the continuing strength of NBPO.

[undervaluedassets] 24/2/2012 11:15

Eps seemed to be presented in 2 diferent ways.

Anyone care to explain...

[melody9999] 24/2/2012 08:29

Yeah agree TM - I've dabbled in and out with this one - the fact there is no 0.5% tax helps .... but I'm in for a few in the ISA this am. first target 1,000

[thorpematt] 24/2/2012 08:20

Can't argue with that.

I've found this one is often a little slow to react. Oversold anyway.

[melody9999] 24/2/2012 08:18

great results...eps 140c up from 60c! ie around 85p. A PE of 10 for that sort of growth is dirt cheap.

[cisk] 14/2/2012 21:58

The drop is just to do with the spread. Ignore it, hasn't moved much over the past week.

[johnv] 13/2/2012 12:45

This is one of those companies on my radar which I never got around to. No idea about fridays drop. Weird.

[undervaluedassets] 11/2/2012 16:52

any clue on the big drop friday?

[gswredland] 15/11/2011 08:09

Interesting thorpe. Thanks

[thorpematt] 14/11/2011 23:11

This caught my eye:



As did the chart:-



As did the P.E

[hollingrove] 06/10/2011 14:29

leedskier
Thanks for that. Helps to explain the sudden fall today.

[thorpematt] 26/8/2011 12:54

I threw this baby out with the bath water a couple of weeks ago BUT results looked very tidy to me cash generation also.

CPO has weakened to a level where I think we might see a return to upward prices. Much like the chart here, we could see a return to the longer upward trend shortly.

[katie priceless] 01/8/2011 20:33

(01 Aug, 2011)
Palm oil gained for the first time in three days, joining a rally in commodities and stocks, after President Barack Obama said Congressional leaders reached an agreement to raise U.S. debt ceiling, avoiding a default.

[matt123d] 01/8/2011 17:40

Yes looking stronger here. 1000p being the level to watch. KOA remaining firm at 3120.

[thorpematt] 01/8/2011 11:50

Looking good for next leg up I suspect.

Interim results and presentation due on 26th so hopefully price will rise into those. No reason why we don't see the £10 breached this time.

[melody9999] 01/8/2011 10:40

Looks like we are back on the upward trend again .... are we going over 1000 this time?

[thorpematt] 19/5/2011 12:29

Yep
After reading the TS. I thought they were good value TBH