Dekel Agri-vision Share Discussion Threads

[rivaldo] 28/2/2018 12:34

Good news today, with (a) reduced borrowing costs and (b) a show of confidence from SocGen.

Cantor Fitzgerald have as a result increased their price target to 26p and say Buy:

"1024 GMT - DekelOil is taking advantage of the favorable terms of its long-term loan to reduce its short-term debts, say analysts at Cantor Fitzgerald. The drawdown will reduce the overall costs of borrowing for DekelOil and Cantor Fitzgerald says it has reduced its debt forecast by 50 basis points as a result. The financial services company says that it maintains its buy recommendation for DekelOil, and upgrades the target price to 26 pence per share, from 24 pence previously. Shares at 1019 GMT are down 1%, or 0.10 pence, at 10.25 pence."

[basem1] 08/2/2018 16:49

Thanks for posting it though Rivaldo.

[basem1] 08/2/2018 16:41

That article wouldn't persuade me to invest as its light on information as regards current numbers. I'm long and am hoping for 17-20p in the next 6 months along with a juicy dividend of around 1.8%.

[rivaldo] 08/2/2018 09:23

The February issue of Master Investor magazine is out today, and it has a nice plug for DKL which will hopefully attract some interest:



"Two British companies which are old Africa hands

DekelOil Public Ltd. (LON:DKL) is one of the leading commodity groups trading in palm oil. Britain's involvement in African palm oil goes back to 1907 when one William Lever from Bolton was one of the first to import palm oil to make soap at his Lancashire plant. He then set off for the Congo with his brother James and established Lever Brothers. Lever Brothers merged with the Dutch company Margarine Unie in 1931 to form Unilever (LON:ULVR).

Palm oil can now be found in half of all consumer goods in Western grocery stores from chocolate, ice cream, baked goods, soaps, lotions, and detergents.

DekelOil has comea long way since its IPO in 2013. It runs a profitable seed to palm oil operation in the Ivory Coast which produced 39,000 tonnes last year.

Its shares climbed steadily in January after it posted record production levels for Q4 2017 and was rewarded with a BUY recommendation by brokers Cantor Fitzgerald. Be aware that in mid-2017 the company's shares fell from 14 pence to 9 pence after it revealed mechanical problems at its mill.

70 percent of production takes place between January and June and the outlook for 2018 is promising. DekelOil has palm supply agreements with many local farmers and does not operate company-owned estates as other commodity producers do.

In 2015 London-listed New Britain Palm Oil was acquired by Malaysian palm oil giant Sime Darby (KLSE:SIME). Could DelekOil be another acquisition target?"

[chadders] 26/1/2018 14:11

Very positive. Thanks for the link rivaldo. Happy to stick with my investment and looking forward to my second divi.

[rivaldo] 26/1/2018 14:06

New recent highs now - in particular, the bid price is up to 11p, which is the highest it's been for at least a week.

[rivaldo] 26/1/2018 09:22

Interview with the CEO not posted here before:



- expects "double-digit growth"
- record results for 4th year in a row for revenues and profitability
- progressive dividend

Sounds confident for this upcoming Q1/Q2 - such that the share price "will deliver what we're really worth".

[mach100] 25/1/2018 22:27

Costax 871 of 872 filtered and reported for spam

[mach100] 25/1/2018 22:27

Lmfao! That moron Costa has posted the above rubbish on every thread!

[costax1654x] 25/1/2018 19:35

I think after FFI with Massive directors buys this one is one to watch as well!

[rivaldo] 24/1/2018 11:49

Nice move up after 140,000 shares bought at 11p. This share could go a long way on a little demand - the m/cap is still only £32m.

[chadders] 23/1/2018 10:22

Well it's one possible explanation of why there's no Norpalm deal yet after initially flagging up discussions in May last year.

[cheshire man] 23/1/2018 09:58

Indeed twistednik,,,,,,,,,,thanks for the link rivaldo :-)

[twistednik] 23/1/2018 09:04

Good write up - hopefully it will spark a bit of interest over the next few days !

[rivaldo] 23/1/2018 08:33

Cheers - here's the link. Very interesting, particularly the conclusion about DKL being a likely takeover target:



Extracts:

"It runs a profitable “seed to palm oil” project in the Ivory Coast, and last year pumped out 39,000 tonnes. The shares have been climbing steadily over the past two weeks after it posted record levels of palm oil production in its fourth quarter and was rewarded with a Buy rating from analysts at Cantor Fitzgerald.

Adam Forsyth at Cantor says: “A stronger fourth quarter shows DekelOil back on track. The ability to secure premium prices is also apparent. It is set to complete the planned capacity increase at its mill ahead of the peak harvesting season starting in February.”

"One more bonus for investors could be the M&A play. Malaysian palm oil producing giants such as Sime Darby — who have a stake in Battersea Power Station — have a history of snapping up smaller players.

In 2014, Felda Global Ventures acquired AIM-listed Asian Plantations for £120 million.

This was followed in 2015 by Sime Darby who completed a $1.7 billion acquisition of London-listed New Britain Palm Oil.

Will DekelOil be next?"

[juuunx2] 22/1/2018 15:58

Nice write up on page 40 of London Evening Standard. Might invest here when funds allow.

[twistednik] 22/1/2018 11:17

Promising newsflow - should start giving the share price momentum. They look well placed for the peak harvest.

[cheshire man] 22/1/2018 08:12

Nice monday morning news here :-)

[masurenguy] 22/1/2018 07:43

Yes - more good news - lets hope that this positively impacts the shareprice into the teens !

[rivaldo] 22/1/2018 07:25

More good news today:



"DekelOil Public Limited, operator and 100% owner of the profitable and vertically integrated Ayenouan palm oil project in Côte d'Ivoire, is pleased to announce a positive update on its ongoing programme to improve the productivity and profitability of its crude palm oil ('CPO') extraction mill ('the Mill') in readiness for the upcoming peak harvesting season which is expected to commence imminently.

· Installation of a second boiler for the Mill to minimise downtime in the event of a breakdown has been completed ahead of schedule and on budget

o Expected to lead to an increase in CPO production in 2018 as lost production as a result of boiler issues in the 2017 high season should be avoided going forward

o As announced in November 2016 the total capital investment for the boiler stood at €1.25 million

· 25% upgrade in the Mill's capacity to 75 tonnes per hour ('tph') from 60tph to increase the volumes of CPO produced at Ayenouan in the peak period has been completed and testing has proved successful

· The additional boiler and capacity increase form part of the Company's ongoing plan to optimise performance of the Mill, which included the following initiatives that were completed in 2017:

o Construction of an additional 3,000t tank to increase overall on-site CPO storage capacity to 8,000t to provide flexibility regarding timings of the sale of CPO and enable sales prices to be maximised

o Acquisition of an Empty Fruit Press to extract additional CPO from empty fruit bunches

· The team continues to develop its smallholder network to expand the reach of collection hubs and increase Fresh Fruit Bunch delivery to the Mill

DekelOil Executive Director Lincoln Moore said, "We continue to make excellent progress in optimising our processing and production capability. The installation of the second boiler and the 25% increase in capacity at the Mill are both part of our ongoing programme to maximise CPO production at Ayenouan, particularly during the high season in Cote d'Ivoire which we are now entering for 2018. These initiatives are designed to reduce downtime and eliminate bottlenecks at the Mill so that more fruit can be processed to produce CPO and PKO. In tandem with these Mill improvements, we continue to work closely with local smallholders to facilitate the delivery of fruit to the Mill via our distribution hubs which are strategically located at sites around our project area. We are determined to ensure all production and logistical operations are fully optimised during the upcoming high season."

[rivaldo] 19/1/2018 07:23

Lovely rise yesterday, but still plenty to go for imo.

Another new interview with the CEO:



"DekelOil sets up a record quarterly output"

[mach100] 18/1/2018 20:17

Evening all. Yes I think that large buy moved the needle over 11p today as there hasn't been other buying to justify it. The share is still cheap at these levels if it can hold it together over Q2 and Q3. It is clear from the interview that Lincoln recognises this too so it is good the board is focused.
Even better of course is the second boiler, the fruit presser and the 75t an hour milling capability will all be in place for the high season so both production and revenue should rise substantially. If so then today's share price will be a distant memory!

[basem1] 18/1/2018 16:38

Wow, a delayed 270,000 buy at 10.95. That person won't be in it for a penny. It's getting quite exciting here, I need it too as I took a large hit in the summer and haven't bought quite as many back this time.

[twistednik] 18/1/2018 14:41

Creeping up towards 11p ...may be back at 12p sooner than we thought !

Small-cap news always takes a bit longer to digest so expect a steady climb over the next week or two.

[cheshire man] 18/1/2018 12:47

Looking at 12p on the chart here just need some volume to get there and then only half way to Cantor Fitzgerald 24p tp,,,,,:-)