New Britain Palm Oil Share Discussion Threads

[nurdin] 18/5/2008 14:47

Forward (09) PE could be as low as 7-8 if they keep growing earnings at 100% as they have done so for last few years.The pace of growth of course depends on the future cpo prices and factors such as yield and production efficiencies.The omens look good however and the acquisition announced yesterday gives confidence that the company is keen to expand its land base.I expect further acquisition down the road.Should that happen the shares could well be exchanging hands at well over £15 one year out.

[crickley] 18/5/2008 11:37

gets a mention ... New Britain Palm Oil, the owner of palm oil plantations in Australasia, rose 50p to a high of 600p, more than twice its 250p flotation price five months ago, after announcing a bid of £22 million for control of Ramu Agri Industries, a planter in Papua New Guinea. It is benefiting from the global shortage of palm oil.

[protean] 17/5/2008 16:49

"After a retracement on low volume, New Britain Palm Oil (NBPO) has picked up momentum again in fine style rising over 9% yesterday in response to a very positive trading update and the cash offer for Ramu. As mentioned in the April 10th post, broker Kaupthing Securities has an 800p target.

A push above the £6 level could see the shares move rapidly higher judging by previous rises."

[t-trader] 16/5/2008 15:25

If £6 holds today, i dont see any resistance till we hit around the £6.70 mark.

[nurdin] 16/5/2008 15:19

chart looking hornicious..as a friend of mine might say :o)

[melody9999] 16/5/2008 15:03

yep - a close above 600p could be important

[warala] 16/5/2008 14:03

Watching .Hope your right.

[t-trader] 16/5/2008 12:02

This is the 3rd assault on the £6 mark and i would expect this to be broken sometime soon. If not today, then next week. I would expect £6 to become the new support then.

[woracle] 16/5/2008 11:27

Nurdin, those EPS figures are a bit misleading as we dont know under what accounting rules and whether bio asets and exceptions are in that. Look at the annual report for 2006 to see how the business performed when CPO is pretty static. They are more meaningful comparision of the past. The last 18 months has been exception for CPO though.

The added 4.5K ha will contribute immediately of course but new potential land of 16K ha will not contribute for a while. It takes about 3-4 years for new plantings to produce after seeding and even then its on a low yield. The likelyhood is they will plant over a 3 year period. But no reason why palm can't sustain growth of 10% a year for next decade, and with production growing sustainably at 8%, based on that a PE of 18 to 20 is justified.

[nurdin] 16/5/2008 11:03

True Woracle no one can predict the future CPO prices but I understand the house brokers forecasts are based on very modest assumptions on CPO prices going forward.Historical earnings performance is admirable however and is as follows:

-06 18c (A)
-07 40.6c(A)
-08 80c (E)

Todays announcement increases their land base considerably and will contribute to earnings in a big way(imo) in 09 and beyond

[woracle] 16/5/2008 10:46

nurdin, good buy this morning but its very misleading to say 100% growth year-on-year...that is just not sustainable as it all depends on the CPO price as you know. Production itself is budgeted to grow at about 7 to 8% year-on-year. The comparatives for 2009 vs 2008 will be much tougher unless u think CPO will average another 60% higher next year. Noone knows..

[protean] 16/5/2008 10:35

A PE of 25 for growth of this sort wouldn't be unreasonable. That would equate to a target of £10.25 if the 41p eps is met.

Huge potential upside imo.

[nurdin] 16/5/2008 10:21

Brokers expecting PBT of $158m this year which translates to eps of near 80c...or 41p.Thats before the BA adjustment.14x earnings multiple at current price is way too cheap for a company showing 100% earnings growth year on year

[protean] 16/5/2008 10:05

Think this one's going to really fly once it breaks above 600. From the previous swings up you can see that the price really shifts quickly when it gets going.

The Kaupthing broker target before the good news was 800p, so this is likely to get moved up too.

[nurdin] 16/5/2008 09:35

Bought back a few :o)

[crickley] 16/5/2008 08:44

Price responding nicely to the news. Should move up towards the £6 mark then well beyond it this time with the excellent recent newsflow.

[t-trader] 15/5/2008 08:09

All the indicators are good for further rises.
Solid trading statement, stong demand for palm oil, rising cpo prices and the chart shows were on our next leg up.

[protean] 14/5/2008 19:20

Robbie Burns seems to think a continued rise is on the cards. He says:

"Good statement from New Brit Palm Oil today - profits are soaring and looks like the current 540 area is going to be a solid bottom. Nicely doubled my money here already and holding for some more."

[melody9999] 14/5/2008 10:22

Strong quarter update, slightly rising PO price, chart on trend line and no 0.5% tax means I am back in this am in quite a big way at 548p. First target 590 but hoping for new highs

[t-trader] 14/5/2008 08:11

New Britain Palm Oil says Q1 pretax profit up, Q2 crop prospects encouraging

LONDON (Thomson Financial) - New Britain Palm Oil Ltd. reported a rise in
pretax profit for the first quarter ended March 31 and said crop prospects for
the next quarter look very encouraging both in New Britain of Papua New Guinea
and in the Solomon Islands.
The industrial producer of palm oil in Australasia reported a pretax profit
of $36.7 million compared with $17.8 million while sales rose to $82.7 million
from $50.5 million year ago.
The company said it continues to be confident of reporting further progress
and success in the year ahead.


Pretax profits have more than doubled!!! Excellent!

[davemac3] 14/5/2008 07:54

nice update

[t-trader] 09/5/2008 09:59

Just topped up with some more this morning. According to the chart we reached the bottom yesterday. So hopefully onwards and upwards from here and we should break the £6 mark this time around.