Dekel Agri-vision Share Discussion Threads

[the accountant] 11/3/2014 20:06

Mach100 yes, I heard there would be an update very soon and I expect it to be positive.

[mach100] 11/3/2014 19:59

886.5
U.S. dollars and cents per metric ton
Contract Month: MAY 14
As of: Friday, March 7, 2014
Source: CME - CME Group

May futures are up 10% on the price the old Optiva note gave FOR A 1.68p share price and up 150 dollars from the 719 dollar low of Aug 2013. The bad weather in Malaysia and Indonesia as well as the shortfall between demand and supply must augur well as DKL rams up production in April and May. This share gets better and better!

[mach100] 11/3/2014 16:20

At least one chunky buy of 170k, maybe a duplicate one. TD are 1.5 on the bid and 1.7 on the offer. I am expecting an update in the next week of production so we will have a clearer picture of how this has hit the ground running!

[mach100] 06/3/2014 16:09

Hi Cyfran, Interesting to have a contrarian view and welcome.

"Their ability to get the FFB to their mill in time (FFB quality diminishes with delay) particularly in wet conditions required to grow the trees married to poor infrastructure. This is a key item on their recent proactive broadcast."

Surely the fact that they are using local growers will mitigate or negate this. There will be both a time and cost saving. In terms of infrastructure it is clear the company have strong government support and I am sure infrastructure can be developed. Indonesia is hardly the most developed infrastructurally and it manages.
The other points you make relate to quality testing. I think it will become apparent quite quickly if the produce does not meet this standard meaning alternatives can be sought.
DKL have been superb so far in doing what it says on the tin, unlike many AIM companies so I have trust in the BOD. I am also sure the downside is pretty limited here and we will see by June a much higher share price

[cyfran101] 06/3/2014 01:03

My issue was never with the plant being developed. They had an experienced company to provide the turnkey plant and everything, as expected, has gone to plan.

My concerns were and remain:

Their ability to get the FFB to their mill in time (FFB quality diminishes with delay) particularly in wet conditions required to grow the trees married to poor infrastructure. This is a key item on their recent proactive broadcast.

The quality/quantity they could expect from such a disparate smallholder base (they are already talking about increasing quality provided by smallholders).

The reliance on a smallholder base they essentially have little control over.

The ability to get any accreditation for the palm oil produced as it has come from such a disparate smallholder base.

Wishing Marab well as he's put in a real shift on this BB!

hxxp://www.proactiveinvestors.co.uk/companies/stocktube/2586/dekeloils-palm-oil-mill-in-ivory-coast-fully-operational-in-fortnight--2586.html

[envirovision] 05/3/2014 21:06

Interesting to see the following increasing welcome look forward to your input over the years. We are all well placed and we are all responsible for good governance and hence good fortune. Please never never ever lose sight of this fact ! Thank you and good health!

[mach100] 05/3/2014 19:54

Welcome Mattjos. I think you have managed to get in before the real news flow kicks in between now and June. The prices are still are still all over the place even allowing for a wide spread. I was actually surprised today's excellent news didn't push it through 1.9 on the bid. But we are now in harvesting season, there are problems in Malaysia and Indonesia, there are 26000 hectares not factored in , the price of Palm oil is rising and other Palm oil companies listed seem to be doing well. Nice to see some more boots on the ground like you in investors terms and I think buys are far outweighing sells despite holders seeing 40 to 50% upside already in a year.

[the accountant] 05/3/2014 10:53

Re posts 500 to 504 concerning CPO price I spoke to the company today for clarification. I was told that the price on the DKL website ( today $965 ) is the Malaysian FOB price. The lower price is the Rotterdam CIF price and it is this lower one that DKL will be using. I think that is normal practice for sellers.

[mattjos] 05/3/2014 10:24

guys, I climbed aboard today. Little annoyed with myself as I took my eye off it 4-5 months ago but this mornings RNS reminded me to start to salt a few away in my SIPP for the long term. Wish there were another couple of MM's participating to help tighten up the spread .. lets hope that materialises later this year. good thread by the way

[mach100] 05/3/2014 07:26

Wow! Fantastic visibility!13 years of untaxed profits plus only 50% after that for an extended period. Dkl will be able to grow its bottom line quite quickly and it will have a competitive advantage over other competitors who have harsher tax regimes. 2p on the bid coming soon?

[mach100] 04/3/2014 22:04

If that 250,000 at 330pm for 1.6p was a sell then it looks like the mid price should be 1.75p and a tick up imminent. I expect some news by Monday to give the share price some fillip as we clock up a full month of production. The news from Indonesia and Malaysia with a rising market price for Palm oil can only help.

[mach100] 03/3/2014 13:29

A jump in palm oil consumption for biodiesel in Indonesia, the world's biggest supplier, will probably mean that shipments fail to increase this year for the first time since 2010 even as production climbs to a record.

Futures rose as much as 2.1 percent to 2,860 ringgit ($872) a ton on the Bursa Malaysia Derivatives today (March 3RD), the highest price since September 2012, before closing at 2,806 ringgit. Prices advanced 9.4 percent last month as soybeans climbed 10 percent and corn added 6.8 percent.
Dry weather in Malaysia and parts of Indonesia is threatening to curb supply of palm oil just as demand in biodiesel increases. Michael Coleman, who helps manage the $143 million Merchant Commodity Fund in Singapore, said on Feb. 25 that prices may advance to 3,000 ringgit within four months as traders anticipate the impact of dry weather on production. (source Bloomberg 3.3.14)

Looks like hedge funds could be interested in DKL's offtake. Rising prices, adverse weather conditions for competitors and unfulfilled demand hopefully means DKL's foray into the industry couldn't have been better timed! I am sure it will be an interesting harvesting season then and if no adverse weather like Malaysia and Indonesia has experienced then DKL is set fair for progress.

[s_e] 03/3/2014 07:42

Thanks for the heads up Egg...

[eggtastico] 28/2/2014 13:18

I think March is when the Season ramps up proper.
The Spread here is annoying as it can lock people in.
However, at least that scares of the traders who like to churn over the penny stocks for a quick buck.

Based on the potential & how PAL are being linked with takeovers & nowhere near advanced as DKL - I am locking these away in a sipp for the duration.

in 5 years+ time, who knows the dividends on their own could pay for todays price.

[mach100] 28/2/2014 12:51

2014-02-28 11:08:14 1.85 50,000 Buy 1.50 1.90

Hi egg, glad you are still here as you made some great contributions on LSE. there are 2 trades on isdx which don't appear on the Daily Mail site. Someone sold 150k for 1.51p this morning then but buyers are paying 1.85p. Monday 2 weeks (17th MARCH) we have the first full calendar month of production so I expect some newsflow by then as well as some possible deals on off-take.

[eggtastico] 28/2/2014 08:41

not odd - it could be on ISDX
Check


THere is a 30min delay

[s_e] 28/2/2014 08:16

Its odd as one of my buys has not shown up at all ...I wonder how many more buys have not been listed...

[eggtastico] 25/2/2014 22:27

Pal have had a few takeover bids havent they?

[mach100] 25/2/2014 21:49

I think the link is out of date. Equatorial Palm oil was up 40 per cent today yet seems structurally way behind Dkl. Pal have 5000 hectares planted compared to 1886 at Dkl but Dkl have access to 27000 hectares now. Looking forward to March and the harvesting. I also have a feeling Dkl have a few more tricks up its sleeve.

[eggtastico] 24/2/2014 22:01

Hmmm i thought the local palm oil price was pinned to that of the international price

[envirovision] 24/2/2014 21:37

The spread here hacks me off

[jasp2] 24/2/2014 21:34

... from the offtake RNS I obtained a price of $835 (see post 474).

[jasp2] 24/2/2014 21:28

The $935 on the DKL website is labelled as the "local palm oil price". The label is a clickable link. I'm not yet sure if it's the price that's used for sales internal to Ivory Coast e.g. DKL's offtake customer.

[the accountant] 24/2/2014 15:20

Mach100 - DKL website has a daily price for CPO and today has changed to $935 but on a palm oil website it has today's price as $835 !! I have a feeling that you are right with the lower price so my figures would need adjusting accordingly.