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Morning Fk1, yes it's another example of a very simple change that could be made to give investor confidence, but they refuse to listen.
It's understandable for the accounts reporting as they are dependent on the blue chips being given priority. During the last conference call, this was addressed again and that was the answer. There really is no excuse though for production figures to be set in stone on the 10th (or whatever date they want, just keep it the same or on the Monday after a weekend).
Harchris, you claim that it's a strange thing to criticise, yet years ago it was not uncommon for good news to be released on the 5th of the month and bad news to get pushed back to the 19th in order to reduce the time to the next RNS. I believe it's only down to investor complaints that they have moved to the more reliable 10th ish of the month, but even that (as seen today) is reliably unreliable.
Very few companies even update monthly, DKL does it on the palm oil side (and soon on cashew) and keeps to a consistent range of dates. So far this year:
14th, 13th, 11th, 10th, 12th, 12th, 10th, 8th, 10th, 10th, 11th. And probably ending it with another 11.
Strange thing to criticise.
I think j/k has pointed this out many times but I can't understand why DKL don't have fixed updates with only weekends being excluded. Should be the 10th of every month or maybe later but still set in stone to gather the full picture but DKL seem impervious to such regimentation.
The bid has fallen below 2p again so looks likely there is a background seller Rugs. My prediction was quite amiss. Hopefully the production figures will send the SP up but we will need the encouraging November figures to continue. We can be assured that no matter how the figures are anyway that the last 10 days to January 10th have been amazing in what's known as a Lincolnism.
I wonder will this be cancelled as it appears twice. Could be a rollover but didn't see an equivalent trade recently . Or maybe shifting stock between brokers? Might explain why the SP has remained stuck despite the flurry of buys. Dkl used to be plagued with phantom trades. The worst history of this in my PF of any share. Let's hope this is not reemerging. If it is a true dump then given DKLs history of in the know sellers then we can expect some issue with the update tomorrow.
Ah ! There is 1m or possibly 2m out of the woodwork.
Still no shortage of stock. Did a dummy buy of 750,000 and the price was still 2.05
Probably sparked by BBN on twitter adding today, he has a substantial following on there (over 5000 followers).
Others claiming to be buying/adding too today.
https://twitter.com/BigBiteNow/status/1744646362782691397
The SP has been at or below this level since mid November without prompting any sort of sustained buying. So what is different today? Maybe there is a share tip around that I haven’t seen, or maybe someone knows something that I don’t. Whatever the reason, it is surprising to see so many buys, especially as it has had little impact on the price. Let’s see what the production update brings, probably tomorrow.
My broker is on full ask and 2.015 on the bid so I expect 2.10 on the ask but sadly the bid stuck on 2p though sellers might get 2.02/.03 . Can't see it staying at 2.05p for long.
I have never seen so many buys without a huge dump in the background. Brokers must have been holding a lot of stock to be able place some 4 m shares without trying push up the price....
Is no longer the question for now at least as 2p on the bid is restored and we have a wave of small but persistent buying. A decent update would surely spur further uplift but can DKL oblige? Hopefully the cashew issues are not structural because it really could be a lifeline here. The company should be throwing money at it to make it work as it is just in its infancy 🚼. But is it beyond their capabilities?
Thanks FK, whilst that may well be true it is at least reasonable to observe that the prices Dekel have received over the past few years, if not perfectly mirroring international prices, are closely aligned and hence it's a useful enough guide.
And it seems from the reported trades that there are only buyers around even now. Back in the bad old days we used to have large unreported sells so you would wonder whether the return of Dumper Dude has triggered a retrace. Of course we also know that there is always 'inspired' selling ahead of bad news at Dkl so that would be a bad omen ahead if a production update.
FKI. It's weird. Only buys still showing yet the price has slipped. On opening for a 100000 dummy trade I needed 2.098 to buy and could get 2.033 from the broker for a sale. As at 1330 the prices have slipped to 1.99 and 1.96
I wonder why ??
Good afternoon Harchris. DKl have flip flopped a few times about their pricing mechanism but my understanding is that it is tied to local CPO prices and there is a disconnect with international prices. Unless they move in tandem the international price won't have a definitive influence on the price DKL achieve.
PO prices are now bring predicted to range between M3700-4100 through 2024, modest gains on the current price. That would be more than enough to provide solid cash generation and profit but of course output needs to remain as consistent as it has this year and the cashew project needs to flip from cash sucking to cash producing.
The foundations are in place and the potential is there, it now rests on execution. Time will tell but fingers crossed for a good couple of updates (cashew and palm) later this month.
I think 🤔 wider market sentiment is weighing on shares as there were only reported buyers so far. The MMs are maintaining the wide spread which hardly helps. The directors are as usual sat on their hands despite the lowly share price but that is to be expected of them given their reluctance to support the SP and their preference for dilution. Let's hope the production provides some ✨️ sparkle instead.
And we arrive. A bit belated but happy enough to see 2p on the bid restored. Especially in advance of the next update. Hopefully the BOD don't manage to sour the next production update with some mealy excuse but if we could get decent figures I think there could be a further rebound in the offing. Obviously nowhere near enough for the dreadful SP performance to be rectified but any clawing back of losses is a small mercy.
Welcome to 2024 Dekelites. Significantly more purchases than sales today yet the share price falls. Isn't it reassuring to know that, in these strange times, there is one stable and predictable occurrence which is the ability of DKL to comply with the laws of gravity and sink ever lower into the abyss. Happy new year all!
Some 150,000 sold by mid afternoon at 1.93
If there is an issue*
To move back to 2p shortly. As Rugs pointed out the large trades seem to be finding a buyer. We are in high season now, at least DKL high season as they somehow extended it some time ago from January to June to include December. Whether 2p will underpin the SP is rather down to our hapless board who like the England football team struggle to achieve two good results in a row. We can be assured though if the issue with Cashew production then it is most certainly region wide but any progress us of course DKL specific
That's what I'm saying, we're past the point of trusting forward guidance but don't be dismissive of actual results on the record, and on the CPO side this year they really are very positive.
CPO production year to December - 36560T, same period last year - 23354T
A 56% improvement is great and we know that prices continue to hold firm around €800/t
The SP is yet to respond but assuming that these results are strong enough to meet all upcoming debt deadlines we should be close to a sharp share price reaction. And if cashews were to suddenly, for once, surprise to the upside then the reaction will be even starker.
* just about to