Member Info for dropside

Still heading north today

Nice start to the week with Palm Oil Price motoring on:

https://uk.investing.com/commodities/crude-palm-oil

If it goes on like this the company will have to look to issue a 'no reasons why (other than undervalued etc)' RNS. But then maybe there could be a reason. I don't want to start rumours as I don't know any more than the cats and dogs in the street. However with the assets they have, slightly under-capitalised for all they want to do such as Guitry, the market capital is very low. Viewed from say Malaysia they must be a tempting target for one of the big palm oil players:
Geographical and seasonal diversity.
Mill has familiar Malaysian technology
Opportunity to expand production - fertiliser programme and extra 10,000 ha planting (see 2017 FY report) starting to come into maturity.
Guitry opportunity
More limited scope to expand in Malaysia

The cashew nuts could be brought into production by the well funded major, then floated or sold off realising more than they probably paid for the whole company.
There, I have just done their entire business plan, where should I send the invoice haha!

CPO price up another 1.4% so far today. If we really have seen the cyclical low in the CPO then that will look like a very shrewd purchase.

Thanks philpot1001, obviously these sources are only a guide. World price trending up again today.

Philpot1001, I think you studied this a few months ago? As I recall you found the REA price tends to be a bit higher than the price on investing.com, and is nearer to the price DKL get. It certainly looks that way on a quick look. The only problem is that the one is (nearly) live and the REA price is a few days behind. Anyway CPO is going in the right direction, onwards and upwards!

I think you got a good price there, better than my buy this morning! This may be the sp bottom, if not it is very close. This business is cyclical and the price has been at an historic low. Palm oil prices are strengthening which, given we are entering the S E Asia high season when prices would normally dip a bit, augurs well.

Up 2.5% now. Better palm oil prices will help massively, DKL usually get a premium locally on the world price.
Just a thought - if the farmers harvested immature fruit in Q3, which drove down the yield, then from what I know of gardening this may lead to stronger more productive plants for next year!

Probably not a good thing for prices - likely to increase costs in India and therefore prices, which would reduce overall demand for palm oil. Malaysian producers would look to move any surplus production onto world market. However it does not appear to be official policy, just a call for a boycott and there are lots of reasons not to - lot of S Indian workers in Malaysian palm plantations for one!

Continues to improve, up 1.6% today.

https://uk.investing.com/commodities/crude-palm-oil

St Brides say the call will be added to the website shortly.

Hi philpot thanks yes I'll chase it up. Maybe it was planned to be uploaded to the new website, but that isn't ready yet.

The 2 October call does not seem to be on the website. I heard the call live, and the "latest shareholder conference" on the website still seems to be the old one. Has anyone else noticed this or have I missed something?

For dealing on the Australian market DBS Vickers charge 0.35% with a minimum of 30 AUD. Why are HL quoting 200 AUD?

On their website, D S Vickers quote a cost of 40 SGD for telephone dealing (about £23), less for on-line. How come HL have negotiated 200 AUD (over £100) to pass onto their clients? What a hopeless negotiation or maybe they don't care? What with the Woodford debacle and this, I think HL have completely lost their way.

HL costs look outrageous "DBS Vickers will also charge a commission fee of 0.35% of the consideration, subject to a minimum of AUS$200.00, which will be passed on to you." Plus the HSBC £15 and the HL telephone dealing charge...total a minimum £144?

Agree with all that jk400.

I'm sure the fall in the CPO price over the last week has much to do with the price weakness. We could now do with a bit more of this:
https://www.thestar.com.my/business/business-news/2019/05/08/palm-jumps-nearly-3-pct-snaps-losing-streak-on-stronger-related-oils/

....and do the deal prior to the court hearing in Botswana in February..

Thanks Ideas, good summary of the options.
I'd go for the simplest option - Option 1 - Cradle Arc has simply run out of money. They may be hoping the administrator can do the deal that they could not on Mowana, and that they will realise some cash from the asset.

Yes prepack and Newco. Had to be done at the plc level I think as the creditor got to court first with Leboam. We have all lost our money here.