Dekel Agri-vision Share Discussion Threads

[empirestate] 15/11/2016 09:42

nice run of buyers this morning, certainly still weight on the share price as the buying fails to have a positive impact on the share price

[rivaldo] 15/11/2016 08:24

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."

[cyfran101] 14/11/2016 09:57

Pay back in one year? No brainer!

[hastings] 14/11/2016 08:18

Yes, more positive news, just waiting for a broker comment.

[rivaldo] 14/11/2016 08:12

Excellent 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."

[empirestate] 14/11/2016 07:41

It would be nice to see the share price re-act positively in some meaningful manner for once.

[rivaldo] 14/11/2016 07:32

Good RNS this morning, announcing investments from the "strong Balance Sheet" to improve efficiency, mostly in time for the upcoming new harvesting season:

[rivaldo] 10/11/2016 13:36

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.

[113mike] 04/11/2016 09:21

Just bought 35k @ 12.15p....shows as a sell

[rivaldo] 04/11/2016 09:02

Indeed empirestate - looking very good now, yet still on a single-figure current year P/E.

[empirestate] 04/11/2016 08:34

nice run of early buyers this morn, can't see the share price holding this price for too much longer.

[empirestate] 03/11/2016 10:12

this looks like the next leg up now a few more sellers were flushed out over the last few sessions.

Riv, i hope you can't sell at 7.38!!!

[rivaldo] 03/11/2016 08:59

Good to see a tick up. CPO prices remain nice and high at $745.

Enocuragingly, online I can sell 100,000 shares online at a premium at 11.38p, so there's evidently demand out there.

[empirestate] 02/11/2016 07:34

dig deep Vince and buy a load of shares

[rivaldo] 02/11/2016 07:26

Very impressive new in-country CEO just appointed. In particular, the replacement process looks extremely amicable and efficient as regards the outgoing guy:

[rivaldo] 31/10/2016 15:12

Indeed - here's Beaufort's conclusion re their upgrade today:

"Our view: This is excellent news! It underlines the confidence DekelOil's regional banks have in both the Group's operations and its management. Clearly, the reduced interest rate payable will lead to a significant reduction in the annual interest costs, while the scheduling of debt payments over seven years will also provide important visibility. It will directly improve profitability, while freeing up additional cash flows either for reinvestment in the business as DekelOil looks to build itself into a leading West African focused palm oil producer.

In previous research, Beaufort had stated its own expectation that management might be able to negotiate improved borrowing terms, which it had believed could be on a rate close to 8%; in the event, it achieved a level of more than 1% below this, which falls directly to the bottom line in both our 2017E and 2018E forecasts. As a result, Beaufort now lifts its price target for DekelOil shares from 21p to 23p and reiterates its Buy recommendation."

[the accountant] 31/10/2016 15:00

Beaufort have a target of 23p up from 21p.
Optiva have 32p.

[rivaldo] 31/10/2016 13:44

Brief analyst comment - I wonder if they've increased their forecasts at all:

http ://www.proactiveinvestors.co.uk/companies/news/168241/dekeloil-says-new-loan-will-improve-profitability-168241.html

"House broker Cantor noted: "Following the completion of construction of DekelOil’s Ayenouan mill and the subsequent ramp up in profitability, the company has now completed a series of refinancings that we estimate will reduce its average cost of debt from 10.3% to 7.2%.

"This secures the company financially as the mill moves to full production and leaves room for expansion."

The broker is upgrading forecasts for full year 2017 due to the reduced interest costs and its target price rises to 28p from 24p. It repeated a 'buy' recommendation."

[rivaldo] 31/10/2016 08:59

Cheers hastings - 28p would be nice for starters :o))

Around 60k currently available to buy online at 11.7p - more than that and the price goes up.

[hastings] 31/10/2016 08:22

As said, very good news.
Cantors is upgrading forecasts for 2017 (full note to follow) but suffice to say target price is lifted to 28p from 24p.

[empirestate] 31/10/2016 07:37

looks like the market makers may mark the share price up on the news for once.

[here and there] 31/10/2016 07:28

Great news here today, an excellent new re-financing, less than 7%, paves the way for dividends

[badgerry] 25/10/2016 20:05

Optiva Note on MP Evans/ Dekel out this afternoon - makes the point quite clearly!

Quote

"Good Afternoon,

Please see the summary below on MP Evans offer. Details can be found below.

• KLK through the subsidiary of KLKI has offered to buy MP Evans for 640p/share in cash, implying a value of £360.5m, representing a 42% premium.
• Shareholders will get an interim dividend of 2.25p a share
• The offer puts MP Evans on a P/E multiple of 32x vs DekelOil’s 8x. As a result, DekelOil presents an excellent opportunity for investors seeking a balance of value and growth

Optiva’s Commentary:

• The acquisition news on MP Evans is very encouraging for DekelOil
• Solid Growth: DekelOil has delivered solid production growth which has translated into significant earnings growth
• Last of its Kind: DekelOil is the only LSE quoted palm oil developer in West Africa not already controlled by a major palm oil player
• Favourable Market Dynamics: West Africa continues to show strong demand for palm oil. We expect this trend to continue and DekelOil to take advantage of the demand and supply imbalance of palm oil. Also, there is less suitable land available for planting and it is becoming more expensive for larger palm oil companies to operate in South-East Asia. It is therefore not a surprise that the deal between KLK and MP Evans comes in the wake of industry consolidation

• Deep Value: In our opinion, major palm oil operators will continue to look for acquisition opportunities and West Africa will become an attractive area for strategic development. With a weaker Pound Sterling against the Euro and firmer CPO prices, we reiterate our price target of 32p, based on a very conservative P/E multiple of 10x. This target price does not give any value to potential development of the Guitry project, which is another project that could support a 60t/hr mill in due course. It is important to highlight that DekelOil will have a 13-year tax break and will not pay any tax on income generated in the Cote d’Ivoire.

[mach100] 25/10/2016 19:26

Nice sector activity and we have moved up i sympathy with MP Evans. These CPO compnaies get taken out at a decent premium so we should have our day in the sun some day. It would be nice to get back above 13p which has proved a resistance point in the past. Obviously we are a way away from that point but this has been way oversold. It is time to get our ducks in a row to restore the share price to good health.