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.
Started: Fallingknife1, 10 Jun 2024 08:52
Last post: dbentley, 12 Jun 2024 22:10
Wow - I’ve not looked at the DKL price graph for a while - in the last 6 months down 43%!!
Given the CPO prices are at highs and cashews supposedly about to come online - That is some statement of faith on DKL the leadership
Basically market saying we have zero trusts in you or your ability to deliver!
Trust - a lifetime to achieve and a second to destroy - a long road back unfortunately - if ever
I wouldn't get too downhearted about 8p because if you look at the chart, when we got news (and photos) of the Cashew facility built and ready to go, this went back up from lows of 1.8p to 5.5p in short order.
The market has currently lost all confidence in the board, but if they can simply get the cashew facility operational and generating revenue, then the SP will respond.
I'm not sure how it's even possible to procrastinate this process for 3-4 years.
And spot on to you too DB - I have exactly the same sentiments. I average 8.5p here and I know I won't see most of that again. To be frank, I am over £20,000 down. Best not to dwell on it too much. At least I got into Rolls at 1.11, so that has more than compensated me for DKL. Swings and roundabouts I guess. Or with respect to DKL perhaps better to say a trapdoor to the murky depths where the sharks circle...
Absolutely spot on Danny!
i actually sold some shares to buy in here 10 years ago! i have to try really really hard not to think about what an error that has turned out to be - if only id left the money in the shares i sold id be 1000s better off!
DKL has been a very very costly mistake when you look at it in those terms!
and as you note Danny, only gets more painful when you consider the methods in which the board has funnelled our investment money to themselves! - shocking
The real tragedy isn’t necessarily the worry to “break even at 1.55”. - No investor is happy to just get their money back. By definition you invest to make a return.
It’s missed opportunities elsewhere as well. If you would have bought Rolls Royce less than 2 years ago you would be looking at 400% profit.
If you wouldn’t be sitting on continuous losses here for the last 10 years (while management gets paid every month) you could have taken other positions elsewhere.
Started: rivaldo, 10 Jun 2024 08:07
Last post: rivaldo, 10 Jun 2024 08:07
A steady as she goes month for CPO in May against a really strong comparative due to the odd high season last year, but with terrific extraction rates and also a very good month for PKO in both sales and pricing.
Above all:
"The Palm Operation is continuing to be a strong performer with strong production, high historical CPO prices and excellent extraction rates. We remain well on track with market expectations for H1 2024 which we look forward to announcing next month."
The next (July) update will hopefully comment on the cashew equipment which is expected to start arriving this month, unless there's a separate cashew update.
Started: rivaldo, 6 Jun 2024 08:39
Last post: HarChris, 6 Jun 2024 17:48
Likely positioning more for the cashew update in a month’s time with the safety of what should be continual solid cash generation from the CPO operation.
Full year results landing this month won’t look too shabby either.
Have been a few reasonable size buys in the last day or so as production update approaches
From REA's AGM update this morning:
"Global CPO production is now growing at a lower rate than global vegetable oil consumption and, with limited availability of plantable land and increasing regulatory restrictions constraining expansion of oil palm hectarage, this situation is likely to continue. Accordingly, CPO prices may reasonably be expected to remain at remunerative levels for the foreseeable future."
I note that international CPO prices have risen nicely in the last week to $1,030:
Https://rea.co.uk/investors/CPO-price/
I assume the next monthly update will be on Monday (the 10th). Hopefully including a slow and steadily improving cashew news update too.
Danny, the target price has nothing to do with whether the share price has been consistently going down (or up, for that matter).
Having a target price of 8p for a couple of years, while the share price has been consistently going down from the equivalent of 11p to 1.1p is all you need to know about their quality of analysis!
Currently Nomad and joint broker to DKL is offloading its loss-making capital markets division to concentrate on wealth management. The 'buyer' for a token £1 was Zeus Capital which last year took over Arden . Hopefully Zeus will do a better job in promoting DKL then WHI.
Started: HarChris, 25 May 2024 21:29
Last post: HarChris, 31 May 2024 10:23
Whilst it hasn’t yet translated into high local prices it’s a big plus that international prices remain so strong:
https://tradingeconomics.com/commodity/palm-oil
HarChris. Interesting short piece on reuters.com. world .africa.ivory coast on cashews.
https://*************.net/strengthening-cashew-production-in-cote-divoire
Started: HarChris, 18 May 2024 12:36
Last post: rugs, 21 May 2024 12:37
Well. somebody has just bought half a million !
March 2014 ish purchases by long term holders. Average ~10-17p
2016 ish Cantor Fitzgerald have target price of 28p
2017 ish Dividend declared and paid.
2018 Annus Horribilis
January 2019 LJM "sees a lot of value" at 3.65p, purchases by Yehoshua Shai Kol and Lincoln John Moore
May 2024, Harchris notes that we're "Entering closed period with full year results expected within six weeks. Cashew operation signalled to see material improvement in volume and quality once shelling and peeling equipment arrives in June. Hopefully we are close to a turnaround here."
:)
March 12th two purchases by Lincoln More are announced, 500K followed by 1.16m. Average ~1.55p
April 15th one purchase by Aristide Achybrou announced, 1.1m shares. Price ~1.3p
Entering closed period with full year results expected within six weeks. Cashew operation signalled to see material improvement in volume and quality once shelling and peeling equipment arrives in June.
Hopefully we are close to a turnaround here.
Thanks for sharing jk, I’m sure most of us would be delighted if we see half of that broker target in the next year - I certainly would!
Nothing new of note from WH Ireland, they didn't even mention the target price, so it must still be 8p.
They state that "the palm oil business remains well on track for a positive result in FY24E in line with our expectations....."
Net Debt still forecast to fall by €1.9 million (E) this year to -€26.5 million (E) from -€28.4 million (E) in 2023 and peak of -€31.4 million (A) in 2021.
A reminder that end of June 2023 there was €212k cash and €5.1m debts maturing within twelve months - they've all been paid down now I believe without any raise or cash injection, just profit and extra stockpile so that should give a sense of what the full year numbers are going to look like.
If cashew operation flips from cash drain to cash generation DKL will quickly be making profits greater than today's market cap.
They're still generating quite considerable cash month on month from the CPO operation so in a sense it's steady as she goes.
Full year results in June should look quite positive showing a healthy profit but of course everything rides on cashew progress through H2.
I take it folks are equally underwhelmed with the numbers and spin around this month’s update! Had hoped for something more encouraging after adding to my holding! This time next year Rodney!
Have raised their price idea for selling 100,000 parcels from 1.16 yesterday to a shade under 1.25 this morning. Their price to buy is virtually unchanged at 1.1625.
There will be very little on cashews. The machine isn't here until next month. Another month of doing the PO maths and wait.
Totally lifeless in the run up to the next monthly CPO update. Tomorrow or Monday, what do we think? Any mention of the cashews or saved for the quarterly update in July?
So the large trade we have been expecting has now been revealed 1.5 m at 1.22
A buy or a sale ? I reckon it's a purchase.
What we also have seen recently is meaningful director purchases from both Lincoln and Aristide well in advance of the improved cashew operation in which they've signalled for June.
And notable is also the fact that none of the directors, who own significant stakes, have been selling shares for any reason.
We have a third driver with DKL and that is impatience, although you do require the patience of a saint with this one.
It is diffult to understand the LSE pricing. Take this morning as an example. Somebody has unloaded shares at 1.15 valued at less than a quid . so LSE then decides mark up the price to 1.225 a gain on tyesterday of 2pct. I mean it's not even the midpoint of the range it is quoting !
Only reason I keep banging on about LSE prices is that the same source provides the prices to my online broker who is also showing an indicative price of 1.225. Okay so I can get a 'proper' price if I go for a dummy trade but I cannot see the logic in the LSE pricing.
Started: blue2guit, 15 Apr 2024 10:29
Last post: Fallingknife1, 15 Apr 2024 15:37
Yes Harchris they aren't the type to throw their money down the drain. Now our money, well, that's a different matter.
See for me DKL are at a very critical juncture, and have been for the past few months. What with the palm oil business being profitable, the indebtedness and the market backdrop what comes next is either capitulation (and we're talking 0.5p) or a rerate to a higher level (perhaps 3p). If the cashew operation doesn't start pulling its weight or the CPO is unable to carry the whole business and funding is therefore needed to service debt then it's coming at the steepest of discounts, in a dilution to oblivion type scenario. However if a clear turnaround is seen and DKL are capable of self funding their way from this point onwards then a £20m+ mcap / 3.5p a share is easily achievable.
I don't think these directors are the types to toss their cash down the drain hence my optimism increasing following these recent purchases.
At least Stockopedia don't have this listed as a "Sucker Stock", defined as: "These tend to be small cap, loss-making, jam-tomorrow, story stocks that are in the process of losing the market's faith. You can be pretty sure that a stock like this comes with a really promising idea … and an emergency fund raising just around the corner. Give these a wide berth… or use a bargepole."
That sounds vaguely familiar.
Instead, they have us down as a "Value Trap".
**Sorry I meant to say I will report back when the momentum is over 40 (NOT the value).
To the novice investor - only invest what you can afford to lose. There must now be a decent chance of investing success here now, but the risk is still very high. Stockopedia ranking (each out of a possible 100):
Quality 10/100
Value 89/100
Momentum 16/100
Overall StockRank™ 28/100 (which is still very low)
For those tempted to jump in here now for the first time BEWARE - we need a steady improvement in the momentum score over a prolonged period (over a year in my opinion). I will report back when the value is above 40 say ( dont hold your breath, as i may not live to see it!).)The share price is depressed because it is high risk, but the potential gains must be large. Time will tell.
Ps In case anyone from Stockopedia objects to this - I do personally reccomend it for the novicè yet serious investor as well as those with experiece, self managing sizeable or growing portfolios. Stockopedia is not cheap, but I have learnt much over maybe 10 years subscribing.
Started: blue2guit, 13 Apr 2024 12:14
Last post: ConMan94, 15 Apr 2024 10:42
I like that we finally have date for the machines to arrive. From there there are no excuses, company must deliver. As for now, things seem to be ticking along. People have waited a while for these cashews, surely they can wait 2 more months. Director buys should add confidence. Let's see what the remainder of this year holds.
Well I added 20% to my holding as soon as that rns landed and might add more later this week.
It by no means guarantees that things are about to significantly improve but with so many discounted shares out there it’s a big tick in the box that these two directors have chosen to throw money at DKL.
At the very least they are fully expecting a turnaround in cashew fortunes from June onwards.
Harchris, sincere best of luck if you go in aggressively. Being over £38K down here, on paper, I will need a series of a lot more convincing buy signals over a fairly prolonged period, before I risk any more. I have seen what FOMO can do to a portfolio, and not just DKL. I do wish all holders here a positive outcome over the next year or two (which is short term for DKL, if you look back). I will await a few years of good profit and some decent dividends before I commit more funds. In the meantime I will accept any scraps that may just roll our way!
Your wish has been granted. Aristide Achybrou, Non-Executive Director, purchased 1,100,000 on Friday 12th April.
"As a result, Aristide Achybrou now has a total notifiable share interest in the Company of 24,924,324 ordinary shares, representing 4.5% of the Company's issued share capital." Personally I don't get too excited by these sorts of buys. At today's ultra depressed share price that's only about £15K. If he really believes in DKL he should be picking up a few million more. I mean why not. If Cashew finally comes good, debt continues to decline the gap you have a multi-bagger (on every incremental pound invested) in 3 years. I imagine he is a man of some means and therefore these sums are small beer. Ditto the rest of the board. Still, buying is better than selling I suppose. Would be nice to see a lot more...
The one and only difference this time is that Lincoln has recently bought 1.7m shares so the perennial accusation of ‘if DKL are so undervalued why don’t the directors buy?’ rings less true now.
Will be interesting to see if there’s any more director purchases - perhaps the 400k buy at 1.35p yesterday? If there is I’ll definitely take the risk and follow them in more aggressively.
Started: scoredagainsteps, 15 Apr 2024 10:37
Last post: scoredagainsteps, 15 Apr 2024 10:37
Showing 70 percent down dont trust this lot
Started: Fallingknife1, 11 Apr 2024 17:19
Last post: DannyQSee, 11 Apr 2024 21:01
I’ve mentioned a few weeks ago to be cautious when professional pundits and a deluded broker said it can only go up… todays drop is a better entry, but I remain cautious.
Thick? What's the point in continually lying about deadlines they know can't be met? Or is it just incompetence? They think clearly the market will believe these continuous attempts to kick the can down the road only for the can to be kicked further down again. The outcome? 8% falls like today when investors lose confidence/patience !!
Started: Fallingknife1, 11 Apr 2024 08:44
Last post: dbentley, 11 Apr 2024 11:55
Well - we called it didn't we - we all said that the chances of DKL managing to deliver the improvements by Q2 was minimal.
there's been a number of posts this week about DKL market cap been insanely low and we should be valued higher etc - whilst on a numbers basis alone this is true - this share will go nowehere until DKL do what they say they are going to do.
Cashew in Q3 - its a lottery - they have no idea, you can't place any faith in DKL statement that they will sort this in Q3 - its simply just kicking the can down the road - they say whatever they need to say to get through today.
this is why this share will never see a material pick up - the leadership management are simply incapable of leading and managing!
How is it possible for us to have, quote, "...developed and commissioned the world’s most advanced Cashew nut processing plant, capable of producing 3.5 million kilograms of Cashew Kernel products each year.", whilst at the same time, quote, "other new cashew processors in our region using this new off the shelf technology shelling and peeling systems are also achieving excellent results."?
Our facility is the world’s most advanced, yet the neighbours without the most advanced are achieving excellent results.
They've, in effect, bought themselves another 6 months with today's RNS, as don't expect any meaningful updates in the July quarter annoucement. That will just be the parts have arrived and are now being installed and we're ready to go next week type of announcement.
Finally, I hope the 'highly credentialled cashew processing consultant' doesn't have a penchant for electing to receive shares in lieu of remuneration. They could, of course, use their wage to buy on the open market though - which would be most welcome.
WH Ireland retain 8p target.
"With palm oil volumes well ahead of the prior year, we view DKL’s palm oil business as well on track for a good outturn this year and look forward to further updates as the year goes on. With two fully invested projects, we view DKL as possessing a strong and profitable business in its palm oil operation, with potential for significant further growth as its recently commissioned cashew operation comes on stream. Leaving our forecasts unchanged this morning, we highlight the fact that the cashew project is expected to be loss making in FY24E, but this should reverse in FY25E as production improves – delivering a significant swing in profitability at group level."
They are also - crucially - forecasting Net Debt continuing to fall, with the broad shoulders of the palm oil business having to sustain the (in effect) mothballed cashew facility.
2021
-€31.4m
2022
-€29.8m
2023 (E)
-€28.4m
2024 (E)
-€26.5m
Source: WH Ireland estimates.
FKI. One thing that jumps out to me is the marginal difference in price between the peeled and the unpeeled cashews. Maybe we should be flogging the unpeeled until June.
Fallingknife, you are dead right about the 76.8%, it should read -76.8%, this is an appalling error, but fortunately it does only relate to inventory and the purchase of cashews, so the actual figures are not too alarming.
Started: Fallingknife1, 8 Apr 2024 13:59
Last post: Fallingknife1, 11 Apr 2024 08:22
Morning j/k, thanks for tackling the ostrich mentality on here where e have an SP that is gone from 20p on the ask to 1.5p and any questioning of the SP/Performance/Board then you are committing heresy and expecting it to go bust tomorrow. The hard of thinking are starting to thrive as there is more than one of them.
Conman, you should also realise that at times there has been a tendency to rush out good news and delay bad news. Long term holders have a very long memory when it comes to DKL.
The 10th of the month has become a de facto date for monthly results, but other things affect that such as weekends and bank holidays. Also, they seem to favour Tuesdays and Thursdays for some reason.
The board have been asked on numerous occasions to release and stick to an RNS calendar, but they refuse to do so. The reason being that the blue chips favour the bigger companies for auditing, so that's fair enough for things like the accounts, but there is zero reason why we couldn't have a calendar for the year ahead noting which days the monthly figures will be released.
There does need to be more accountability on this.
Chris you should know by now that unless results are released on 10th each month, some people on here immediately feel that the company is going bust.
Why? Monthly results haven't been released as early as the 10th since October - the 10th-12th is the standard range now with the occasional late one on the 13th.
Afternoon jk. Good points and I hope you are a good bellweather for this. The fact that they didnt release the CPO numbers today on the infamous 10th is either a good sign ( production up again or Cashews ramping up with functioning equipment ) or an extremely bad sign where we get double whammied on both counts or especially CPO and Lincoln and co are sitting on it in the hope"the last 12 days..... " wheeze can be wheeled out again. Fingers xd.
Started: HarChris, 3 Apr 2024 07:45
Last post: ConMan94, 3 Apr 2024 10:53
Indeed Chris. Further confidence on the cash position - Company is sat on circa 1,700 tonnes of Palm oil, price is increasing, good decision to hold this back. Could be worth around £1.3m in revenue. It's actually a real shame the cashews are lagging, not just because of the obvious SP impacts, but the Palm oil business is flying right now if you look at the data. Company should be booming, but this is holding us back.
I know we've seen recently that int. prices don't correlate exactly with local prices but there is certainly positive correlation over the medium term. Besides the six month spike in late 2021 through 2022 we're now seeing 10 year highs:
https://tradingeconomics.com/commodity/palm-oil
Started: Fallingknife1, 28 Mar 2024 00:21
Last post: Fallingknife1, 28 Mar 2024 00:21
Hence the price recovery? Though the bid /ask suggests a sale due to the timestamp.
Started: blue2guit, 27 Mar 2024 21:46
Last post: blue2guit, 27 Mar 2024 21:46
Welcome to the club of the downtrodden - recovery from what? The share price has been in near continual decline sice Feb 2014, when the share value was 17p. At least you can only lose 2p per share, so hats off to you. The word "recovery" is not appropriate here yet - "stop the rot", possibly. It's good to dream - at some point there will either be a turnround, or receivership. It's a flip of the coin. Tails you lose, heads you win. Tails I lose, heads I lose less.
Started: rugs, 27 Mar 2024 10:51
Last post: rugs, 27 Mar 2024 17:25
Faz. I wish my average was 2
Looks like a sell to me based on the published trades and cancelled trades, but who really knows. Hopefully it's a buy!
I would like to average down after buying at 2p but I'm not convinced we're on the road to recovery yet.
Morning Rugs. Probably a buy which explains the rise. Wonder will the cashew update provide a 😮 surprise?
So, is it finally a buy or a sale. ?
1.30 paid there
Started: rugs, 26 Mar 2024 10:01
Last post: HivedOff, 26 Mar 2024 15:30
This share was tipped heavily by Alan Green, the kiss of death on most investments, big advocate of Bidstack. He tipped it on Vox Podcast with James Waite and I have been loosely following them since. Quite hilarious really, at the time I think they were 2.6p, October last year, today 1.13p, I don't know how he picks them!
If they go under 1p (which wouldn't surprise me) I might have a flutter. It's no more than gambling really though.
Afternoon Rugs. That is something that has been needed since the beginning but unfortunately it has been beyond the compass of our hapless board. Given their incompetence it is most likely more delays and excuses are on the way instead of actually dealing with issues. They stumble from one disaster to another while telling the market the last 10 days have been encouraging.
Down 8% today making even a 25% recovery in the SP bringing us back to just above the recent all time low. You would think when the SP is so driven down by our incompetent Board that even a dead cat bounce shouldn't be too big a task but sadly beyond them. I wonder what the recent investor thinks as even he is down 10% on his investment . If he read this board he would know what a bunch of clowns we have in charge of operations.
I doubt the 400,000 trade is a sell as I can buy at 1.19 and only sell at 1.155
We really do need some good news on cashews asap.
Started: rivaldo, 12 Mar 2024 14:07
Last post: HarChris, 22 Mar 2024 16:32
1.2p to buy, that's more than a 30% increase just to get to Lincoln's 1.1m purchase price a week or so ago.
You'd think the two large director buys last week were a hint to improving cashew performance soon to be announced, right? Whilst early enough not to get accused of insider trading... I doubt Lincoln would buy 1.6m worth only to then see it become a big fat loss following the upcoming results.
Herman. not any more unfortunately !
Hoever intl cpo price is now above $ 1100 up by more than 10pct in past week. Can only be a matter of time before those in the Cote start to reflect this.
At least power now restored to the country after the incident with the offshore electricity supply,
Up we go.
Leading from the front?? What a joke! He has driven down the price from 20p to 1.45p through ineptitude, spin, false forecasts and Gok wanning of the SP. I hope he is focused on the Cashew production and can be proactive in avoiding any more calamities of his making.
RNS Hotlist with Zak Mir:
https://www.share-talk.com/rns-hotlist-with-zak-mir-pow-maru-tcap-land-fgp-aura-dkl-urah-atm-renx-palm-hayd-hat-psn/
"Shares of DKL have appeared chronically undervalued as compared to the progress being made by the company over the past couple of years. This point is underlined by the Executive Director leading from the front in terms of buying into the stock."
Over one million shares sold with zero purchases. All trades at 1.24 or above.
All day best I can sell at is 1.211 whereas I can buy at 1.24 so I suspect the majority of the trades today are in fact buys not sells.
Keep buying Lincoln.....