Dekel Agri-vision Share Discussion Threads

[rivaldo] 10/3/2021 08:14

Indeed, it's bargain time considering the placing was at 5p! The sell-off afterwards was due to the problems at IG Index causing people to have to offload their margin positions - now it looks like that stock has been well and truly soaked up.

Today's update should be enough to see the share price roar past that 5p placing price. Arden have a 9p target for starters, and at some point this H1 that will probably be increased further if this high production season continues to be as strong as it is currently.

Particularly with those high CPO prices now locked in for the entire high season and potentially beyond.

[2vdm] 10/3/2021 07:58

Yes, strong update and hopefully we'll get another one next month as promised.

[pugugly] 10/3/2021 07:57

So why is share price now well below placing? Does not appear to compute!
Off subject - Good news on CRU this morning

[burtond1] 10/3/2021 07:26

Heading up a division for @DekelAgriVision "...We believe our palm oil operation in 2021 could challenge the record financial performance in 2017..."Here, #DKL Exec Chairman Lincoln Moore expands further with @copytasterhttps://total-market-solutions.com/2021/03/dekel-agri-vision_march-2021/

[byh] 10/3/2021 07:09

Fantastic; all as hoped for and confirmation of cashew plant on-line by end of second quarter.

[lyceeuk] 09/3/2021 15:17

DKL Podcast 013 PalmOil Production and Prices.posted today

[rightnellie] 09/3/2021 11:55

For those people with a long memory - Hughie Green would like this share. I hum the tune every time I consider its progress!

[rightnellie] 09/3/2021 11:45

Thanks for sharing this Rivaldo

[rivaldo] 09/3/2021 09:34

Arden's latest research was issued on 5th March and reads as follows, with a 9p target price and significant forecast upside given Arden's very low CPO prices used in their estimates:

"Dekel Agri-Vision
*Buy
Target Price: 9p
DKL.LCurrent Price: 4.7p

Anticipating Earnings Upgrades from February Production Results

Dekel Agri-Visions reported an excellent January production update, showing positive momentum, supporting our buy rating and underpinning excellent shareholder returns on offer. We see visible near-term earnings catalysts; favourable pricing conditions for palm oil as well as increasing utilisation and ownership of their cashew processing plant, demonstrating execution on the diversification strategy.

ExcellentJanuary Update – In January, fresh fruit bunches (FFB) processed were up 52% YoY at 15,601MT and CPO production was also up 52% at 3,269MT. CPO sales in January were up 20% to 2,538MT. The average CPO price for January 2021 was €796/MT, 28% higher than January 2020, and significantly, over 30% higher than is currently factored into our forecast model for 2021.

Executing on Diversification and Value Creation - Dekel purchased a further 16.7% in the Tiebissou Cashew Nut Processing Plant in February, raising its total ownership of the plant to 70.7%. As utilisation of this plant increases this year and through to 70% in 2022 on our numbers, operating leverage should drive strong free cash flow growth.

Upside Risk to Earnings – Current production trends and average selling pricing (average CPO price in January was €796/MT) are running well ahead of our forecasts. If current trends are largely sustained and provide improved visibility on 2021 earnings, we would likely see significant double digit % earnings upgrades as our model incorporates average CPO prices of €600/MT for 2021 and €625/MT for 2022.

Investment thesis and valuation- We reiterate our buy recommendation and 9p target price, based on our DCF sum-of-parts valuation. The stock trades on a very attractive 15% FCF yield in 2022 supported by the ramp up of cashew production which rises again in 2023. Strong execution on the multi-commodity strategy provides increasing exposure to higher value cashew processing in coming years and risk diversification which will ultimately reduce cost of capital to the Group and drive a rerating."

[rivaldo] 08/3/2021 09:39

And CPO futures have stormed ahead again to new multi-year highs:

[tradertrev] 08/3/2021 08:52

Palm oil prices in Malaysia within 2.5% of the Feb '08 all time high.

[cheshire man] 05/3/2021 13:22

Dekel Agri-Vision
@DekelAgriVision
·
11m
January Palm Oil Production

Palm treeAverage PKO price/tonne €663

Palm treePKC production (tonnes) 292

Palm treePKC sales (tonnes) 150
Palm treeAverage PKC price/tonne €68

#DKL #PalmOil #Cashew

[naim96aim] 05/3/2021 10:55

The price went down because an IG spreadbet client had to sell their placing stock at a loss due to not being able to afford the new 100% margin requirements

[rightnellie] 05/3/2021 10:53

thanks byh - have been feeling that the share price has been going down because of share dilution and uncertainty about the arrival of the cashew nut equipment. If it is soon on its way I think the price will recover and progress to its true worth. A good opportunity now for people to buy more shares at a very good price.

[naim96aim] 05/3/2021 10:26

Well staying true to your word have you topped up now lol

[naim96aim] 05/3/2021 10:21

Great looking forward to it and back to new 52 week highs imo

[byh] 05/3/2021 10:17

Well well... I received this from LM within 2 minutes of sending:

"Hi (*) – all on site – last one imminent to go."

Good news it seems (and my faith is restored...)

[naim96aim] 05/3/2021 10:07

Taken another 600k today - 2 lots of 150k to show at 4.6 offer - an absolute gift sub placing with prod update incoming next week.

[outlawinvestor] 05/3/2021 09:59

byh - failure to respond to shareholder enquiries is definitely out of character. LM typically gets back within hours, sometimes within minutes depending on his schedule and has always been happy to pick up the phone.

Lincoln's email can be found on the last page of any company presentation on the website. Their email domain is still dekeloil.com, @dekelagrivision.com addresses don't work. Clearly the contact page needs to be corrected - something worth highlighting if you do contact them.

[byh] 05/3/2021 09:40

Nellie: the fear of a delay announcement is the only thing stopping me from topping up right now. I think that as far as we know, #3 of 4 left Italy late October but has not yet been received on site and #4 has not yet left Italy. DKL will take a short-term hit if a delay is announced. Incidentally, I did email the company and received 'undeliverable' from the address on their web-site and no reply to the same sent by their web form... Not too impressed, and it seems out of character. My guess is they're waiting for something to be released so they can give a positive update.

[rightnellie] 05/3/2021 09:12

What has happened to the last 2 shipments of cashew nut equipment from Italy? No notifications about this. Looks like they may not get the factory set up in time to start cashew nut processing in time for peak harvesting. Any thoughts anyone?

[2vdm] 05/3/2021 07:52

So what if it's down, just buy more! CPO prices near all time high, cashew processing plant due to be commissioned soon (end of March/April), another project still to be announced. This is not a short term investment imo, so I'm long on it and have added this week.

[rikid2] 04/3/2021 19:26

Price now 10% below last placing / primary bid