We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
From a chart perspective, the share broke long term support at 1.9p - so might be slight resistance once it hits that - but clear skies to 2.8p from there.
Think 2024 sees a strong year financially and operationally for DKL and can't see this sitting down here at 1.5p for long.
We were already looking at a healthy strengthening of prices through H1 into H2 due to the El Nino effect but now with the Houthi crisis in the Red Sea on top are we about to see a repeat of spring 2022 with CPO prices spiking well north of 4000MYR?
Yes I've noticed this trend Chris. CPO keeping the company moving forward while the cashew business lags.
International CPO prices continue to knock on the door of 4000MYR. I know that isn't the exact price DKL themselves receive but higher int. prices will see local prices trending upwards also.
Foundations continue to look strong, over to management to make the most of it.
The aforementioned conversation between Lincoln Moore and MBTrading:
https://twitter.com/MBdaytrading/status/1746871409765240986
"Palm Oil Prices Expected to Surge"
https://bnnbreaking.com/world/malaysia/palm-oil-prices-expected-to-surge-says-industry-expert/
Despite already owning such a large amount of the company it certainly would help sentiment in the short term for the directors to buy a good chunk on the open market in the coming weeks.
A simple thing that could create a decent reaction to fingers crossed - meanwhile int. CPO prices continue to look strong.
ConMan, to build up some level of (extremely cheap) stock to pay for the invetible payment in lieu for services rendered later. Why create more out of thin air down the line, when they can buy cheap on the open market now?
That is a totally seperate issue to debt, addressed the other day, which is falling at a reasonable pace already.
The SP being battered is a confidence issue in itself.
Why on earth would the company start buybacks now when we have so much debt that we need to get down. Get the cashews sorted, cash flow rolls in, pay down debt to reasonable level. If at that point company undervalued then yes buyback shares.
In 10 years this hasn’t made any money and given the rate of inflation and other missed opportunities investors need this to double a few times before we even break even.
If the company were really worth 9.5 or 8p per share right now they would be buying shares left right and centre and do the next acquisition or share hand outs for underperforming staff in shares held in treasury and not continue to print more.
We’re at 1.5p now so all these comments and recommendations at 10p or 9.5p or 3.5p were wrong, incompetent and misleading new investors.
I am very curious how they are going to make this right. If it were a football team only a new coach would give new confidence. They should all resign and hand back their share awards for underperforming.
Morning fk1, the other board appear to be more positive, even adding and calling the drop 'mad'.
The BOD saw "a lot of value" at 3.65p, so they should be piling in at this level and/or even looking at share buy backs to cancel or to hold and sell on when the inevitable shares in lieu raises its ugly head in time.
If forever is until the company goes bust or they agree to a takeover then they can get away with it as they hold a controlling stake. I suppose they could even engineer a MBO given how they have trashed the SP and they would save themselves listing costs. If there was more diverse share ownership in DKL then their half baked ideas and almost total incompetence wouldn't have free reign.
These last six months were strong enough to not only survive without a cash raise (despite starting with just €200k) but also enough to meet all loan maturity repayments, in part due to a significant build up of inventory that has now been sold.
So yeah it's that combination of CPO volumes and sales price that is now key, the latter continuing in our favour... need margins maintained until cashews are generating cash too rather than placing pressure on cash reserves and we will see a rerate here.
No permanent damage has been done yet from the recent failures but management won't get away with it forever.
Just thinking about the "doing better than people realise quote" last year.
The profit figures would disagree, around €600k per annum, but the debt numbers are still reducing at a reasonable pace, even after yesterday's announcement.
Down from a peak of -€31.4 million in 2021 to around -€26 million this year.
Servicing that debt is of more concern than whether the cashews are further delayed. It's already 3 years delayed in any case, so debt is something I can agree with HarChris on, and to service that until the cashew facility is finally ready, we are reliant on the volumes of CPO being maintained.
On that score, FFB's processed (tonnes):
2023 182,362
2022 116,733
2021 190,020
2020 154,151
2019 176,019
2018 146,036
2017 171,696
2016 171,301
2015 151,930
HarChris. I agree the directors and major shareholders do not appear to be reducing (or increasing !!) their shareholdings otherwise they would need report it with a TR-1
However I don't believe the 3pct ruling applies to marketmakers so Killik with its 21.5m shares, or even WHI, could well be one of the 'players'. There are also old shareholders who are not directors who have substantial holdings ( but below the 16-17m level) Yossi Inbar perhaps ?
Also, as you are aware, it doesn't take very large trades to swing DKL pricing so sales of 2-3 m are going to move the share price disproportionately and to our detriment. rgds
It is your perogative of course to believe in the serendipity of sell trades just before bad news which DKL has a long standing history. We can continue to watch the same thing unfold but attribute it to any other cause but the probable one (due to its regularity). You talk below about a recovery we are now in the start stage of the DKL rinse repeat cycle. We have had excuses (lies) with the promise of recovery a request just to hold on followed by a slight recovery possibly some decent numbers but inevitably followed by incompetence and a hammered SP before reverting to the excuses (lies) stage with a promised recovery just around the corner.
It is totally impossible to prevent anyone finding out anything. In this instance all you’d need to know is that there isn’t going to be a dedicated cashew update this quarter to conclude that they are lumping it in (the bad) with the good stuff.
There’s always going to be someone in admin that gives someone they know a little heads up - I’ve seen far far more obvious and egregious selling before news than this though.
At such small amounts it’s another non issue. The issue is operational performance and that’s what deserves criticism.
The share price stayed within a tight trading range right into results so it’s hard to come to any concrete conclusions like that. There were also some big buys so much more likely that some were punting on good results whilst others less positive played it safe.
Now if the directors were dumping I’d be mightily concerned but they continue to maintain their large shareholdings.
Good morning Rugs. Not just a few times unfortunately and it has been raised a few times at the AGM but shrugged off by Lincoln. I only wish I had followed their lead. I guess in a cosy cartel operation there is privileged information for the few. We already are aware of the issuing of shared to certain advisers and there must be more to this kind of dealing be cause thanks to our calamitous board the subsequent SP performance of the shares in lieu have been ,well, calamitous. Note no share buying by the board despite having driven the SP to an all time low but they will continued with their inflated salaries in return for running the company literally into the ground. No matter the price recovery here I would not invest another penny in here and would advise any non invested person to stay clear of these incompetents.
To see all the late-reported large sales now showing up that were made just ahead of yesterdays poor RNS. As FK1 has said this has happened a few times in the past so it would appear certain parties had access to this information ahead of it becoming public. I sincerely hope this is not the case.
On the plus side to all this palm oil prices and outlook remain very positive. We're now seeing the Red Sea crisis start to have an effect with international CPO prices up around 7% in just the past week, not to mention El Nino expecting to play its part through 2024.
Despite the constant management missteps if the cash inflows keep coming then the share price will eventually recover. This time next week/month/quarter folks.
Absolutely where I am at too DBentley and may I confess have been for some time. DKL is run as a cabal and has been from the beginning. Zero accountability. If there was a large percentage in a fund company then they could engineer change possibly but the substantial majority shareholding is all with the board. God knows what Ares the recent bought in guy makes of it but maybe even he doesn't have the clout. Would be good if he bought in a bigger holding and sack the lot of them. There is no floor here except 0p and that is where Lincoln and his cabal are taking us!
No comment
Lincolns utterances are steadily becoming even more laughable or would so if they weren't so financially painful. Their own projections were 10000t production in 2023 but the actual outturn was c 330t so out 97%. Yet Lincoln says in January 2024 that the problems are "easily solvable ." This is the ultimate "dog ate my homework share." With Lincoln everything is designed to deflect from reality while spinning a yarn that better times lie ahead if only investors just hang on. A lie we have heard many times.
Https://twitter.com/MBdaytrading/status/1745380635982561361
"Obviously disappointed with #DKL, had brief email exchange with Lincoln and his words ‘ Hi Michael. Yes cashews is frustrating but very solvable’ - I’m speaking in more detail tomorrow"