Proactive 27/3 |
Topped up today a couple of times today
Only small numbers |
Nice to seem the palm oil price firming up again. |
Paul and I have just released Ep 2 focusing on my recent site visit to Bangka mill and plantation - |
EPS expected to be 117p apparently |
All vegetable oil prices are volatile and PO is affected by supply and demand in the same way as any commodity.
Any comparison with olive oil is irrelevant. OO is a very minor oil in terms of world vegetable oil supply, whereas PO is far and away the most important.
The saturated fat issue is also not really relevant. For many applications, e.g. margarines, shortenings and industrial frying, the 50% saturated fat is necessary/beneficial - remember that liquid oils used to be hydrogenated to make them higher in solid fat; that leads to trans fatty acids. The problem was particularly severe in the USA as they used little PO and lots of hydrogenated soybean oil, whereas in Europe PO was/is used. As a result the US had a very high level of heart disease. |
interesting podcast for a long-term holder, backs up convictions on the stock.
Guess the volatility in the palm oil price and its saturated fat content, in relation to, for example olive oil, might have been drawbacks that could have been mentioned in the podcast as could their dependence on a single country with capricious tax policies on export of palm oil at times.
On the other hand, olive oil is threatened by climate change with poor harvests pushing up prices and MPE is both expanding its hectares and will benefit, should there be sufficient rainfall, from incrementally increasing crops over the next 4-5yr as their more recently planted crop matures.
we're told that relations with major shareholder KLK are completely amicable. |
Very enjoyable podcast Mark. I first invested in MPE back in August 2023 after listening to one of your previous podcasts I've added to my holding numerous times since. Looking forward to your follow up on the plantation. Cheers |
It would be interesting to know the relative requirements of synthetic fertilizer for each type of oil.
Mark gets a bit muddled between acres and hectares about 10 minutes into the podcast. |
TY, Mark. I haven't had time yet to listen to all the podcast, but your comments are eminently sensible. Having worked in the palm oil industry in Malaysia in the 1980s and regularly visited in the 20 years following, I have seen the industry grow rapidly until now it is easily the 'world's favourite oil' the title of a talk I have given to several groups like Probus, U3As, etc. Without PO billions of people in the world would starve.
IMO even 'unsustainable' PO is far more sustainable than oils like soybean or rapeseed. Compare the biodiversity of a rapeseed field (almost zero) with an oil palm plantation. |
My fellow pod-castaway Paul Kerin and myself have just released Ep 1 of our two part ‘special’ where we cover MP Evans. Ep 2 will cover my extensive site visit to the plantation and mill at Bangka Island. |
Broker update.Analysts at Canaccord Genuity raised their target price on palm oil business MP Evans from 1,350.0p to 1,400.0p on Tuesday, stating the group was "continuing on the right path".Canaccord Genuity said MP Evans's recent trading update highlighted a strong operational and financial performance in 2024 despite moderately challenging weather conditions in certain Indonesian regions due to dry weather.The Canadian bank said MP Evans' total processed crop remained broadly stable compared to 2023, reaching approximately 1.61m tonnes, driven by increased production of own crops and smallholder scheme crops.However, purchases from independent suppliers were lower than expectations due to robust internal production."We continue to view the company as well-positioned to deliver strong results. With consistent performance and unchanged conditions," said Canaccord Genuity. |
Cavendish upgrade by 8%. Their forecast next year is for $750 ex-mill price with MPE currently achieving over last year's average of $823 there's quite a lot of room for CPO price to moderate further. |
Good update. Cavendish expect over $95m of Free cashflow for last year. |
£15 anyone ?? |
Nearly £6m bought back yesterday
About 1.2% |
Or maybe part of the major potential purchase of it's own shares announced on 24/12 |
NTV, good spot ! (630,000 @ £9.50) Could this be the previous bidder KLK ? Interesting that KLK was nudged up to 24% recently, due to the MPE buy-back. |
Big trade today |
Wrong title for RNS |
Share Buybacks getting larger
£12m this time |
Bought some more today |
CPO $1380 now. Looking good. |
As predicted, with the price of palm oil holding its highs, the share price has benefited as per the RNS. |
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