Equatorial Palm Oil Share Discussion Threads

[mudbath] 12/10/2017 18:52

I think that EPO exists only to fulfil an exploratory role as a stalking horse for KLK.On this basis LEG would lose its independence just as soon as it could demonstrate the potential for surmounting all local problems from politics through to disease.
The man to ask is Lee Guo Zhang !

[troublingtimes] 12/10/2017 15:03

I think if you look at Mirabaud's number you will find some problems.

For example, Mirabaud's report suggests plantings produce in year 3. It is true you get a few bunches but your hectare is not break even until year 4 and only profitable in year 5. You replant at maybe year 20.

They take a theoretical npv per hectare value and multiple it by all the possible hectares that can be planted. Somehow they forget that you are not even half planted until 10 years from now so we need to discount that again. If you do that, you probably wipe out more than half the business valuation - and after debt you are left below the current share price (not counting the above factors).

On top of all this, the actual asset is held in a jv. Will any money pass up from the JV to the listed company and then out as dividends?

With all this, maybe 1p-2p per share might be fair ... but will you actually get any money out of the company?

[troublingtimes] 12/10/2017 15:00

EPO just got another chunk of cheap loan money from their major owner.

You have to wonder what side deals there are? What sort of discount price KLK has on the crude that will be produced? Presumably KLK are supplying the equipment for the mill - any price padding I wonder?

So with all that will any money come up from the JV to the shareholders?

Come to think of it, how do the numbers for the mill stack up ?

Even if you believe EPO's inflated production forecasts there is not enough production to keep it busy.

And they have not shown they can plant much more than 2000 ha a year so that won't change any time soon.

[shrout] 13/5/2017 21:08

No mention for PAL, but an interesting insight into the problems two other companies.. Sime Darby and Golden Veroleum have had developing palm oil concessions in Liberia...

[jovi1] 10/5/2017 21:44

great 20 liter sold
lol

[mudbath] 30/3/2017 11:51

The Bank of England is to consider using palm oil in the production of the new £20 note, following criticism of the use of animal fats in the plastic £5.
(BBC News)

[mudbath] 22/2/2017 10:04

Nice chart though jovi1.
Those who invested over recent months should be comfortable with their holdings.
Although upward movements in the PAL share price tend to be erratic,we do keep seeing good occasional buying.

[jovi1] 21/2/2017 10:57

Not the most exiting one I think
On RNS 2 trade transactions
Still

[shrout] 24/1/2017 10:22

Already happily in profit with this one Muddy :-)
As you say a move into the 4p range would confirm the upward momentum of the share price Not taking anything for granted though...

Best of luck with AEG. I'm in a similar area with Velocys.. VLS.. which has done very nicely so far this New Year.

[mudbath] 24/1/2017 09:34

Positive momentum is continuing to build here shrout.
When the share price moves into the mid 4 pence range at least you can feel secure with an initial tranche of worthwhile (paper) profitability.

[mudbath] 19/1/2017 22:38

Thanks for your input shrout.
Although the link might be tenuous,Palm Oil does have a direct link to my latest investment,AEG, for the Active Energy Group intend to utilise the tens of millions of tonnes of waste pulp generated by the palm oil extraction mills to convert this bi product into their unique biomass pellets.

[shrout] 16/1/2017 16:42

More on the ongoing Nutella safety discussion..

[mudbath] 14/1/2017 10:07

Adverse press comment over recent days might well serve to temporarily affect the PAL share price,possibly significantly so.The "scare stories" contain nothing new however;they have just been deemed newsworthy,with Nutella, possibly unfairly,singled out for special attention.

Palm oil is the most consumed vegetable oil on the planet, appearing in just under half of all packaged products found in supermarkets.
It is the most efficient source of vegetable oil and its use is expanding rapidly – which is a threat to habitats in tropical rainforests, where it grows.
The fears that palm oil cause cancer are due to compounds called glycidyl fatty acide esters (GE), that are produced when palm oil is heated above 200 degrees celsius.
The oil is heated above this temperature during the processing of many foods, but Nutella has received the bulk of negative press.


Demand for palm oil is skyrocketing worldwide. The recent spike in use by the US snack food industry is due in large part to Palm Oil being used as a replacement for controversial trans fats.One might draw the conclusion that the strong upward trend in consumption will continue .

Possibly any significant short term weakness in the share price will present an opportunity.

[mudbath] 13/1/2017 12:03

IKA
Interesting.

[shrout] 12/1/2017 12:28

Nice informative thread Muddy.. I wish I'd found it earlier. My entry price is double yours so maybe I'll hang on for the 14p :-).. assuming everything goes to plan that is, and we eventually get to the Mirabaud target.

PAL is one of 14 stocks I bought in the new year.. nearly all of them for the potential shown in the chart, but also helped by reading useful threads such as this.

I'm revamping my portfolio after a couple of fairly disastrous years when I abandoned my basic principles .. ie listening to too much bb and other hype, holding on to stocks when the chart says sell etc etc. New year new beginning for me. (still holding BYOT btw, for my sins :-!)

atb

[mudbath] 11/1/2017 16:26

Thanks shrout for your post which is the first since I opened the thread last May.
My target is 14 pence,in line with earlier valuations,although I will probably exit at 6.5 pence which will be a nice uplift from my 1.25 entry point.

[p@] 09/1/2017 21:55

Looks like KLK showing interest again.Very leaky.

[shrout] 09/1/2017 14:23

Pleased to say I bought a small stake in these last week mb. Your 28 Nov prediction looks to be well founded :-)

Wouldn't have bought without EPO's commitment to environmental sustainability, which appears to be much better than some palm oil companies still engaged in destruction of primary rainforest.

[jovi1] 09/1/2017 12:51

This boring one is turning to be a good one
May continue for long time

[mudbath] 05/1/2017 14:29

As suggested,PAL is now demonstrating relative strength with the share price recovering towards
2015 levels.Lots more to come in my opinion,for we could well see a 100% ++ rise through 2017.

[jovi1] 05/1/2017 13:15

I wander what happening??
Whatever it is let hope it last
Good luck