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KLK’s last in market purchases were March 2019.
Well KLK are buying again, defenses at the ready
I agree Nobull, I see this as long term potential and a takeout is bad news for any long term shareholders who value growth + dividends. I originally invested here just sub 50p around 25 years ago.
The management is excellent - just look at how pro active they were at rebuffing the takeover but also the latest H1 announcements showing how they really focused on gaining outside smallholders crops to the tune of 157%.
This is lower margin but will feed well into profits and shows they are already well geared up for their own expanding CPO.
Haven't seen any new notifications from KLK - but they can get lost as far as I'm concerned!
One of the institutional shareholders is probably reducing. About 0.46m shares traded today. KLK might bid again, not to add value for their shareholders, but just to be in charge of a bigger revenue stream. Every share they get sub £7.40, they must think they are on to a winner - no wonder they don't like MPE buying in its own shares for cancellation at these prices - I don't know which is worse, your advice or KLK. By reducing their stake, the selling institution is not supporting the directors - they just make it easier for KLK to get control at a derisory price. All of them are ghastly, you, the selling institution and KLK.
Volume significant for MPE
Boom
According to the MP Evans ticker the CPO price is currently 720, if it holds at these levels for H2 it should be a very good year.
Although spread is horrendous
...imagine if this was one of our retailers - Sales (cpo production) UP 30% + Selling prices (cpo) UP 17%
the share price would probably have jumped 50%.
Ah well, hopefully this value will out in the end...just have to be patient!
Couple of nice buys yesterday ahead of the detailed numbers. Share price really should be considerable higher.
Good start to the year all things considered. H2 should build on the strong start. The CPO price remains on the up.
The disconnect is strange between SP vs CPO price. Brokers to the company, finnCap, see last year’s $119m revenue being boosted this year to $154m, then $183m in 2021 and $207m in 2022.
That should see pre-tax profits leap from $10.7m in 2019 to $22.5m this year, $46m next year and a massive $63.6m in 2022. Earnings in cents could increase from 7.8 to 28.1, then 54.6 and 74.6 cents per share.
I am unsure what CPO price they used for this calculation.
CPO price was $510 in May - share price around £5.50
CPO price now $688 - share price around £5.25
30% increase in CPO with a pretty static production price should make the price rise if just a few more people could add 2 & 2 together?
Half year results around mid September and I will add a few more if this trend continues.
In 2016 KLK’s final unsuccessful bid for MPE was 740 per share or around £415m - currently market cap is £275m. The bid of 740p at the time was an increase of 74% on the SP - only around 12% of holders accepted. Many long term holders here - consistent divi payer. An offer of £9 - £11 might tempt some. Basically MPE shares have always been undervalued.
Shares are tightly held here. Moves on little volume either way - now the share buyback program has been curtailed by KLK ( based on voting / shareholding) the price was always going to drift, I believe this could have been KLKs intention. A lower share price would make any premium offered by them appear more attractive. Could be wrong.
...also strange when (appearing correct allocations) it is showing roughly 1.5k shares sold and 2.5k bought!
CPO price also still gradually rising - $655.
Minimal volumes but beats me why the fall with good news and sales activity - biggest fear still KLK buying on the cheap?!
Excellent company and management - I 1st bought shares in these around 25 years ago at just under 50p.....
Has not done much for the share price though.....
Nice bit of news today, boosts the cash.
CJ66 I have exactly the same thoughts. CPO price recovering, I expect MPE’s production to increase YoY as well. The SP is doing as expected, I guess KLK will bide their time for now. Happy to HOLD this for several years, based on the young age of the crop production will keep increasing.
With the CPO price steadily rising and now up to $650 from $510 in early May,
it's disappointing to see the price slide - and unfortunately just what KLK wanted by stopping the buy backs.
Have to hope it recovers quickly enough before they launch another low ball bid.
Board did a great job to fend them off for anything below £10 last time....
Some chunky trades for MPE today. CPO price $620.
$620. Moving up nicely.
Good advice hops - his has been demonstrated previously, fair to say any offer would need to be at the right price and have the blessing of the Board. Maybe some of them might be looking to cash out in the coming years who knows. Happy to wait ... tomorrow would be great .... if not happy to collect the dividends for the next 10 years.
The Institutional Share Holders who "collectively" own this company have made it very clear by their "inaction" that they
intend to support the Directors, so any one who is anticipating a quick profit would be well advised to look elsewhere!
Could be a good top up opportunity for long term holders. Now that share buybacks are cancelled the support has gone.