Anglo-Eastern Plantations Share Price (AEP)

If this can hold above $600 this could be the turnaround.
I hope so as I have bought a few back that I sold a year ago.
With fairly fixed overheads the commodity price multiplies profits on both the ups & downs massively.
Don't know if any chartists out there can give an opinion on this one?!

Palm oil prices have now dropped over 25% from the $678 and today sit below the $500.
This will hurt with a reasonably fixed cost base as AEP has acknowledged, despite a 9% increase in production.
As a cyclical commodity, this should be somewhere near the bottom as profits become wafer thin.
AEP is well cushioned with cash in the bank, and I stand by the below for longer term, but it's going to take some while for the earnings to turn the share price again (despite the slightly bizarre 7p increase on basically a profit warning today!).

9 month trading update noted a 24% increase in FPO sales, 5% higher selling price,
but the real indicator of profitability is the increase in net cash of 38 million dollars in 9 months,
for a total 110m dollars or equivalent of some 2 pounds of the price per share being cash.
With the earnings per share looking to come in around 75p.
Biased as a holder for some 20 years, but originally buying in around 50p a share - I can confirm this is about as stable (despite being Indonesia) and uncovered low key share you can get. Not quite Trump proof as it works in dollars, but certainly Brexit proof!

Hello Yamsel,

There are very few private shareholders in this Company. Over 50% held by one shareholder. In my opinion the shares are worth several times the current price

A good and financially very strong company, ,how ever it is another matter as to when the undoubted value will be
released.