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The price of palm oil has been surging, sending its discount to soya-bean-oil futures from more than $150 a ton six weeks ago to less than $26 a ton on Friday. Given the way hedge funds have cut bullish bets on soya-bean oil in recent weeks, the spread could flip to a premium soon for the first time in almost a decade.
prices of the Malaysian benchmark contract are up 29% since the start of October.
SINGAPORE: Malaysian palm oil futures rose 2.5 per cent and touched their highest price in more than three years on Wednesday, as supply outlook for the edible oil in 2020 dimmed and prices of rival oils surged.
The benchmark palm oil contract on the Bursa Malaysia was up for the third straight session and closed at 2,687 ringgit per tonne.
I think KLK know from last time the directors won’t let this go cheap - irrespective of market conditions. Reminder they offered £640 in October 2016 and increased to £740 in November of the same year. MPEs independent valuation came to £1082 - note since then the group has acquired more land. KLK won’t bid again until they have big holder(s) onside likely Nokia Bell Pension fund. Happy to wait it out.
£10 or £11 for me
The good news is that if the CPO price continues to rise then KLK may have missed a good opportunity to buy very cheaply, and MPE 's Directors have already done a good job in talking the price up - if profits are on the rise too, then this will help massively.
It is after all a fairly fixed price operation, therefore prices up or down have a big effect on profits.
Interesting. I still think KLK will be back in here - the BoD have put a rough value on the company and with the current value of the pound it’s a good time to test the resolve of holders. Happy to cash out for £9 per share.
Another large sale today. Be interesting to see a TR1 soon. Perhaps KLK buying more from Standard Life Aberdeen?
Good good. I have held these for a while & am underwater atm
The palm oil price is creeping back up
Some large trades today for MPE.
...or rather 'come bad' depending if your looking at a takeover at around £7 or MPE directors fighting for at least £10. I know the pre bid price was well below these, but it's a big difference!
Todays results - under very low CPO prices point on why not try the bottom end.
Today’s announcement ties up loose ends and IMO it is only a matter of time before Kepong Berhad try to take this over again. They hold around 20% of the stock, given the value of the pound currently its a good time for foreign investors to take advantage. Depressed Palm Oil price could also help them. This one will come good.
KLK just written off $35m in a joint venture part of Equatorial Palm Oil,
whilst probably a drop in the ocean for somebody of their size it might still help keep them away from MPE - although it would also reinforce the mantra of they don't want to overpay if they do have another tilt.
I still think the continuing cyclical low price of palm oil is dangerous for a lower bid than it's long term value. This is why MPE are still having to prop the price up with buybacks even as you point out it is mildly increasing KLK's stake!
Wow, thats the definition of long term hold. Keep it up!
Aye I noticed that. Tempted to buy more but already have a signficant amount of my Sipp in MPE
Could be sooner rather than later. In a weird way the company is helping them by buying back shares and thus indirectly increasing the percentage holding of KLK. Let’s see happy to wait here.
Stake up over 20% now. I reckon they will attempt a takeover again but it may be a long wait.
Purchased some shares today - my buy not showing. Seems like a well run business with the potential for a take over either way happy to hold these for the long term. Growth potential. Let’s see what happens.
there is an uncrossed trade for just 1 share.........What is this all about ?
Worse still - just seen an earlier one from 15.04% to 16.08% - another 500k+ shares
RNS Today that KLK have upped stake from 16.28 to 17.98 - that's a purchase of nearly 1m shares so almost has to be an institution selling - not good.
Certainly a long slog at present Hops - CPO now under the $500 level and 25% down on the years start at $678.
With largely fixed priced costs, this must be hurting, although they do have a robust balance sheet.
I think the main danger is the big shareholders remaining patient and not seeking a quick panic sell.
KLK must be licking their lips as this will hurt the short term profits + reduce NAV, as the biological value is based on the achievable crop price.
Clever thing for management to renew the buyback which helps stop a price drop, and keeps the veneer of everything alright. I hope a CPO price recovery is on before the final results next year or KLK will be back for no more than £8
MPE is going to be a long slog. Excellent results will await the patient.
I am sat on 263K DKL shares and a book loss of 20K (64%) I won't be averaging down on DKL so in for a very long wait. Would need a good few tonnes of cashew nuts to entice me to the AGM! Sold MPE at 771.19. I hope Monday is good for you and other holders. And a good weekend to you.
Blue. Well done if you got out at 770 or above. That silly little uncrossed trade at closing has pushed the price down a bit.
Agree with you on DKL, you still holding c 220000 ? My holding slightly bigger (have been stupid in keeping buying to average down) but currently am about 70pct down on my investment. Maybe they will hand out cashews at the next AGM ?
Good weekend