Member Info for jk400

I agree with Slift, these were never going to be spectacular results because of the mothballed cashew facility.

The key takeaway I can see at first glance is this:

"The Cashew Operation ramp up remains the key catalyst to drive both our short and medium term growth plans and remains the main drag on our share price performance. We are buoyed by the fact one of the other local Cashew Operations in our regions experienced almost identical issues with their equipment from the same supplier and their recent shift over to alternate shelling and peeling equipment, with the over sight of the same expert consultant we engaged, has resulted in a drastic improvement in operational and financial performance. We are therefore doing everything we can to deliver the same outcome as quickly as possible."

Are we sure that 6:30 (as in 18:30) is not a typo and they actually mean 16:30?

Either way, this is not a good look.

HarChris, hopefully you now see what we've been banging on about for months. We want this to fly as much as anyone else, but these things keep happening.

I will stand corrected on this, but I believe the 6 month deadline DKL have to publish the accounts runs until 7:30am on Monday.

The other forum is stating the deadline has already passed if not released today, but I don’t believe that to be the case.

Either way, we should not be anywhere near leaving it to the last half hour. Extremely unprofessional.

Spoke too soon, now 19% down. Wow.

Indeed, down now by 13%+ on the day.

Even if the results are spectacular on Monday - by no means guaranteed with a mothballed cashew facility - the best you’ll see is 1.4p-1.5p, back to where we were the other day. Unbelievable.

Morning fk1, remember when we were accused of being 'stale bulls' (perhaps not unfairly!) when we so much as suggested that the monthly results be released on or about the 10th of each month - where the market has become accustomed? It "doesn't matter", they said.

Well, what about week 26 for the FY results, there's a deadline for those?

DKL don't adhere to a financial calendar, in case "the blue chips are busy with the big corporates" - they take priority, you know.

At least, that's the information we have on the matter from one of the recent conference calls.

Although they've been released in week 26 every year since 2017, that means nothing. This year, it looks like week 27 - or you would jolly well hope so!

This is also why you see major SP downward shifts over time as the market expects something to happen on a certain date and, when it doesn't, folk get itchy trigger fingers and sell off with a spriral effect.

HarChris, I would expect things to be similar as last year, i.e. very good for CPO, but the mothballed Cashew facility is costing circa €200k per month, so that will drag things back to barely breaking even.

Many long term holders here remember the days of 10p-20p, so welcome along on the ride of your life with DKL.

Not yet rugs - only when this hits the WH Ireland target price of 8p-9p!

Has there been a tip or something that we've missed? It surely can't just be the usual buying in ahead of news

Just looking at the DKL Youtube page, there hasn't been any new videos for more than 3 years - https://www.youtube.com/@dekelagri-vision2400/videos - although a lack of puff pieces isn't helping.

There has to be more effort to spread the message.

Just found £2.00 and a free trade sitting in my account, so have bought another 144.

@davey50, yes if 1.5p is the limit of your aspiration for this, then yes a rethink would be most prudent.

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.

Dbentley, if HarChris bought in at circa 2p (from memory), then unfortunately it's already half way there in terms of 50% down on original investment!

The only way is up though, as they say.

For anyone expecting a miracle next month, I suggest October is a more likely timescale. That's already been telegraphed in the April RNS.

Remember, the equipment was ordered in January 2024 - a mere 3-4 years after operations were due to commence. The key date though is that, quote, "deliveries expected to start arriving in June 2024, which will be announced in due course." Note, "start arriving".

Even if that timetable is acheived the April RNS already stated that "we expect to see a material improvement in cashew production volumes and quality during Q3 2024."

In a nutshell, more waiting.

WH Ireland retain 8p price target.

"With the palm oil business continuing to deliver and a step change in profitability anticipated as the cashew project approaches nameplate capacity, we view Dekel on an upwards trajectory....Forecasts unchanged - With FY2025E expected to be the first full year of the cashew project operating near full capacity, we expect profits from this business next year and hence potential for a meaningful pivot towards cash generation and higher levels of profitability.

Full report available to view in the usual places.

Danny, the target price has nothing to do with whether the share price has been consistently going down (or up, for that matter).

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."

:)

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.

We have a third driver with DKL and that is impatience, although you do require the patience of a saint with this one.

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".

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.