Equatorial Palm Oil Share Discussion Threads

[gopher] 05/7/2013 22:46

Some recent Chronic Investor comment (High risk but in an Africa portfolio) however shares now suspended pending value destruction?

[mark knopfler] 31/5/2013 07:04

Does one take that article at face value ? Much of the time, articles like these are written to try and extract money for the locals from the rich foreign usurpurs.

Some of the time, of course, it is all true.

Like many AIM companies, this share is likely to be a multiple of the current level or bust within a year or two.

I am not informed or clever enough to know which is more likely.

[cyfran101] 31/5/2013 00:12

Statement from Liberia's President Ellen Johnson Sirleaf.

"There's no doubt about it, that once we say the communities have rights to what's on their land. Even if we decide to negotiate concessions because they don't have the resources to put the land to use, that in effect will benefit them with housing and jobs and social benefits but they will be full participants," she had said.

Seems like Liberia's greater need has overtaken the rights of the Liberian Farmer.

On the other hand subsistence farming is never going to have as much value for the country as what EPO have planned and Liberia are only doing what compulsory purchasing does in this country to get large scale projects off the ground.

Its up to EPO to make a success of this so those benefits do ripple out into the local community but at present its certainly not the local community that has benefited.

[pugugly] 30/5/2013 15:30

varies:> Not sure if you have an allotment or a vegetable garden. The way I read the news article (if it is substantially correct) it is a bit like someone saying that the local council has given aomeone the right to use it (your garden or allotment) for 50 years and they have torn up all your vegetables and planted their own cash crop -

You are then permitted to work for them for peanuts - said peanuts will not enable you to feed your family as well as you could in the past.

If my reading is correct I would not be at all surprised to see serious cases of sabotage.

Declaration:- I do not hold but have had on watch list since Jan 2011 but have always had concern over value and financing model - now futher doubts about land policy. At current price I was about to buy until land grab article posted. (imo etc all cautions apply) .

[mark knopfler] 30/5/2013 12:04

This management seem to lurch from one problem to another.

[varies] 30/5/2013 11:58

Who are IPS ?
There are so many pressure groups and one does not expect them to take an objective view. I suspect that some latter-day Pilger is at work here.
As a shareholder (with no greater claim to objectivity) I believe that replacing a great many marginally productive smallholdings with one large plantation is beneficial and that even the complainant may profit from this.
If one can believe what plantation companies show on their web-sites, the workers get good housing, schools and medical facilities and, of course, new roads.

[pugugly] 30/5/2013 11:28

mdchand:. Could (imo) be high risk of scorched earth campaign by the dispossed - Palm trees are easy to damage or destroy.

[mdchand] 29/5/2013 11:32

low productivity may not simply be due to issues with local contractors I guess.

[gopher] 29/4/2013 20:43

Kenatbabken - Thanks for that link it explains all, good project but the company simply does not have the equity to see it out and become cash flow positive.

[cyfran101] 23/4/2013 23:09

Also the Palm oil price has been dropping. MPE took a hit recently on their results despite an increase in production.

[jell8] 23/4/2013 20:06

Still, the price is still extremely low. Once oil production begins properly and revenue starts coming in the share price should increase significantly.

[kenatbabken] 23/4/2013 19:01

Most likely the reason for the drop would be that they,ve fallen behind with
the planting due to problems with the local contractor as explained in the
above note

[pugugly] 23/4/2013 18:11

Jell8:> Unless they are so short of cash to pay their share that they are in danger of being absorbed for a nominal amout by their deep pockeded Indian partner.

I am not suggesting that this is so but like yourself I thought this might have been a good entry point and trying to think what might be behind the fall in the price.

[jell8] 23/4/2013 17:57

Surely long term this price is a bargain?

[pugugly] 23/4/2013 16:21

Looks as though they are going to get well stuffed - Now at an all time low - Trading at 7.75p. Ouch.

Declaration have been watching for an entry point but share price movment suggests that this might not be a good investment.

Any knowledge out there ??

[gopher] 09/4/2013 21:31

Just returned to the Co to see progress and notice a recent share issue to raise cash. Not too bad but if the Co turns out well then new investors can take another 17% via warrants at what would then be presumably a bargain price.

This seems so typical of AIM companies, jam tomorrow and seed corn investors get diluted along the way.

[marab] 25/3/2013 11:47

kenatbabken - good questions but I don't want to appear to be pushing a competitor on this thread so have replied on the DKL thread.

[kenatbabken] 25/3/2013 09:40

marab

I did look at DKL and it does have potential but there are quite a few questions
that will only be answered when the plant has been running for at least 12 months
ie

Will the logistics work,from harvesting to processing the maximum window is 5 days
and the timing of collection from 5,000 smallholders would be crucial

For the CPO to be classed as RSPO and obtain the highest price in the market all
producers would surely need to be RSPO registered ie all 5,000 of them

What margins are they likely to achieve

Is the supply of Fresh Fruit Bunches guaranteed,How do the smallholders at the moment process their crop

[marab] 24/3/2013 14:27

Anyone compared PAL with DKL which has just floated on AIM? Dekeloil have a 60tph mill on site and due to be up and running at the end of this year, with 27,000 hectares of smallholders to supply FFB and expecting to produce around 40-50,000 tonnes of CPO in 2014. Dekeloil are only capped at £14m and I was wondering how you think that compares to PAL at £13m. Obviously PAL have a larger land bank than Dekeloil which at the moment has only 32,000 hectares of land plus the 27,000 hectares of smallholder agreements, but does seem to be on course to getting cash flow in 2014.

[snurkle1] 13/3/2013 12:37

Thanks H & trader,
managed to sneak a few through vat free GM :-)

Some nice rings would be nice indeed.

[traderabc] 13/3/2013 09:08

Snurkle, this is an ETF that can be held in an ISA. It's issued by HSBC who aren't that trust worthy, so there is some counter party risk to consider.

There is most likely also a little time decay involved with this one, though very little compared with an IG spread bet. If you are aiming to hold for many years you are probably better off with physical, though of course the vat issue comes into play with that route.

[hectorp] 12/3/2013 19:31

hi snurkle, very few private investors buy the phys. pal. There is not much of a market for it. IF you get suck at some point I am sure you could get some Pal rings made, or some sort of jewellery.

I can't help you with ETF's I simply trade the metals on IG Index ( spread bets) when that is, I do.
I see PAL has gone back up several percent this past week or so.
I am looking to see I missed a good chance to buy at 720!
H.

[snurkle1] 09/3/2013 17:03

Hi H,
About a month ago when all the trouble in SA was shown on the msm, I bought a small amount of palladium, 3 ounces. I'm hoping to extend that holding over the next few weeks to perhaps 7-8 ounces.
Got it from GM. What surprised me is that on ebay there hasn't been 1 1oz bar for sale.
Is it rare to hold physical?
Which ETF is the best one to use for trading palladium?

[hectorp] 05/3/2013 09:55

you are welcome... oh thats a month ago never mind...
PAL starting to get some positive writeups this week again, preferred over Plat, and Sprott is even suggesting buy Pal instead of gold.
Frankly they are not equal horses, gold always has its own spot, pal is basically industrial.