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Jk I wouldn't expect a change in broker target due to one month of lower pricing but would if it continues, it's definitely a shame considering the strong international prices.
We have to remember that there are thousands of small cap companies that are at historic lows and therefore there is competition for investment... those on the sidelines may view DKL as undervalued but if there's no obvious catalyst they aren't going to feel rushed to buy in.
Today's update wasn't that catalyst.
Morning fk1, WH Ireland had assumed €850/tonne for the full year, so today's news of €737/tonne - although there are signs of "improvement" - would suggest the (only last month) updated price target of 8p may be at risk.
Zak Mir on Share Talk:
"It is a shame that the market is clearly not engaged in a positive way regarding what DKL is clearly achieving operationally. It remains to be seen whether the prospect / reality high season will lift the bulls out of their slumber."
https://www.share-talk.com/rns-hotlist-with-zak-mir-eisb-arv-wpho-sed-eme-tm1-dkl-kefi-ujo-csfs-neo/
So here we are folks. Like a drunk at a funeral wondering where our next fix is coming from rather than addressing what is lying in front of us. A laissez faire board where in any self respecting company a head would roll this morning. A company who is happy to have Lincoln peddle any lies he can get away with while sitting on a dwindling SP. A company who have a board and posters here in denial despite the evidence before their eyes. A company for the few rather than the many investors who have put money in here on a promise completely detached from its delivery. A company who puts tolerance of failure above seeking remedies and rewarding those who keep the faith. A tone deaf BOD who won't care when the music stops.
My apologies! Though to be fair I have pointed out there is no floor here nor any accountability for failure. Today's near 8% fall is attributable to investors piling for the exit despite Lincolns attempt to put lipstick 💄 on a pig. You can't buck the market but for the Board it is just business as usual. Oh well. Onto the next disaster!
HarChris - 'expecting uptick in february'
Which February?
Sadly FK1, you spoke too soon.....Another 10% down. Not sure whether to laugh or cry...
I am slightly relieved it hasnt fallen though it could as holders digest the news. The Board have driven the SP so low thar it should take calamity to drive it down further. Realistically their stewardship is so disastrous that even starting from a low base they are not showing the wherewithal to drive the SP up. They seem to lurch from one bad month to another. Nothing in today's update shows that they have got a grip on the situation.
One trade of £46 lol back to stalemate.
A feeble attempt to link Global CPO prices to local CPO prices Rivaldo as a straw to clutch onto when the company themselves say the Price they get is shaped by the management of LOCAL food prices. There is definitely a job for you as Dkls copywriter.
As for the 7.5m 'crazy' mcap I best then avoid the 8am rush to buy shares in a company that they have trashed the SP and MCAP by the Board in case I pick up an injury. Thankfully you have at least omitted the WHIreland Target Price, a Target Price so ludicrous that it deserves never to see the light of day.
Yes rivaldo I would put the sell off in 2023 down to the risks that come with high debt vs very low cash position, especially in this environment. The big positive since is that the company has been able to pay down debt and avoid having to raise so cash must be being generated at decent levels right now.
Like you say the cashew operation needs to be adding to that cash generation, not depleting it, for the debt risk to dissipate but for now things appear to be ticking over reasonably. Got to hope for the sales price to trend back towards int. price too.
Today's January production update is reasonably encouraging.
CPO sales are up 38% year on year and production is up 56%. Sales prices are down hopefully temporarily, so overall sales numbers are slightly down on last year, but margins may make up for this with lower FFB prices being paid.
Above all, perhaps this good start to 2024 production signals a healthy H1 high season to come.
And global CPO prices remain strong at $965 as of last Wednesday.
Cashew news is steady as she goes, so this is currently a wait and see until Q2.
The m/cap now is just £7.5m. The fall is unsurprising in these markets given the crazy wait for cashews to begin and then ramp up production, but with the core CPO business being nicely profitable there comes a point where this surely has to be a bargain!
So today's production update confirms to me that there is a disconnect between the price for CPO that DKL achieve and the International price. DKLs pricing seems dictated by local efforts to manage food prices. Of course their costs are lower as they point out but any hopes ignited by buoyant International prices are clearly misplaced. The price achieved is very disappointing regardless of margin as higher prices would at least boost income figures for the market to see. As always more dogatemyhomework excuses.
https://www.***************************/dekel-agri-vision-reports-strong-start-to-2024-with-significant-increase-in-palm-oil-production/4121142296
solid production, shame the sales price has fallen despite rising int. prices, 'expecting uptick in february', product orders made for cashew operation and expected increase in production in phases.
not going to lead to a stampede of buying but solid and underscores significant undervaluation as long as cashew operation actually starts improving.
The SP is down another 3.3% today on no news and historically the market has got wind of good news being rushed out and bad news being put back by a few days.
Now to their credit, those games appear to have stopped and, like you say, they tend to go for the 8th-13th.
Just for the record Harchris, I agree with Fk1 that it is unnerving when news is expected on or immediately after the 10th of each month and it does not appear.
DKL shareholders have a very long memory.
I say this is a matter of trust because another bugbear is the 70k tonnes CPO facility that was built in Ayenouan a decade ago. As a new shareholder, I assume you believe it to be a 60k tonnes facility (?), because that's what all of the literature states it is. Whereas around 5 or 6 years ago, it suddenly lost 10k tonnes capacity, on paper at least. Are you unnerved to hear that, because I would be? The old RNS's have it as such in black and white.
Is hopefully neither a ghost trade that have plagued DKL for many years nor the investor(s) who have inspired inside.. err I mean insight information on the company performance and the imminence of bad news 👀.....
Harchris an argumentum ad populem is of scant significance in an anonymous BB where we have investors who don't belong, don't post or just people browsing posts. I speak from my own experience of DKL and if you lined up 1000 who support your viewpoint then it would not alter my experience of being invested one jot. You are actually talking through your hat about me hoping the SP recovering because of course I do as an investor so it is not even a question. I just refuse to be wilfully blind.
Haha I did indeed!
Oops HarChris, you spoke too soon....
I don't think it's unreasonable to say that virtually no-one besides yourself thinks reporting the monthly results between the 8th and the 13th each month is an issue. There is no volume here but today the only trades of any size are two buys, not a single sell over a couple of hundred quid.
So nobody has become unnerved today by the lack of an rns... It will land this week and will dictate what happens next, hopefully despite all your cynicism you are still hoping the results are positive and the share price starts its recovery.
Good morning j/k . Yes indeed trust.A wider point which is seemingly missed by investors who are newer to DKL rather than us stale bulls. However we don't need to keep Richard Attenborough close at hand in case we have a first case of a leopard changing its spots to be confident these newer investors will soon have a taste of DKL slipperiness first hand, close up and personal.
Agreed Rugs! Any small crumb of comfort is magnified in these times by the terrible SP performance under an incompetent Board who have driven the SP down from 20p to 1.35 with a succession of mishaps. Even 2p iss a 50% rise from here but achievable only because we are at such a low base.
Has enough confidence in the soon-to-be-released numbers to buy 440,000 on opening this morning. Hope they are proved correct......
I follow tons of small cap companies and not one, not a single one, commits to putting out a monthly update on the same date each month. There’s no reason for that sort of regimentation and will only cause uncertainty when for whatever reason they aren’t quite ready on that exact date.
As far as I can see they always report within the first 9 business days of each month, this one should be no different.
Indeed fk1, some think this is a minor thing to be discussing and of no relevance, but as we know it's yet another example of a much larger problem - that of trust.