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"So they take shares instead of a salary? Sounds like a purchase to me."
The shares are never purchased though, they are created out of thin air at our (retail holders) expense.
"They could have taken the money instead."
Yes, they could - so, ask yourself this, why do they literally never take the money instead?
Https://www.youtube.com/watch?v=Z1LLraqd2lM
5:18 onwards.
I agree with everything dbentley has noted on the subject of dilution and will reply in due course.
My two penneth:
1. Cantor Fitzgerald used to have a price target of 26p/28p, I think it was, so some of these targets appear to be lick finger and stick it in the air.
9.5p seems reasonable from where we are right now. The reason it's not going up is possibly due to DKL's recent record of under delivery. A case of "we'll believe it when we see it" and then they will raise the target.
In the past, DKL were under promising and over delivering which is where we need to get back to. A lot of trust was lost from investors and it takes a very long time for that trust to be restored, if ever, once fingers have been burned.
2. You have to remember the huge volume of shares that have been issued in this stock recently. I, along with fellow holders here, have repeatedly been bringing this to attention of the board either on conference calls, AGM's, etc. but it keeps falling on deaf ears. Quite simply, there are too many shares in issue.
The days where a few buys would instantly lead to market illiquidity and huge daily gains are long gone. There is far too much stock available.
I would propose before any dividend that a share buyback is considered, to get the issued levels back under control. Especially at these price levels, with the option to reissue later if necessary.
There will also be some profit taking at the moment from those who got in at under 2p.
3. Nothing is logical about this stock.
The market will catch up once it's ready, but I suspect any decent profits here will happen over the medium to long term.
That's another reason why nothing much happens, investors get bored and sell off at any price increasing the downward pressure on the SP.
The market has woken up to actions speaking louder than words. Even the much-vaunted but now lesser-spotted "puff pieces" can only move the dial so much.
We need sustained good news over many many months, not just a good month here and a good month there.
Nice little puff piece mention with Zak Mir here at 5 minutes 32 onwards.
https://www.youtube.com/watch?v=JUh48Dox9eg&t=375s
To anyone newly invested in DKL, I would firstly say welcome, but then advise you to pay very close attention to the opinions and views of long term holders here. They speak a hell of a lot of sense on this matter.
Whether you wish to take those views onboard is up to you.
Morning fk1, yes let's hope we can now have a sustained period of positive newsflow with the cashews incoming and the gok wan effect already baked in for April. The 2022 accounts shouldn't be far off either, which I believe (despite the dreadful harvest) should be positive.
It's a shame that the BOD are still persisting with the 60k tonnes nonsense. This would have been a good opportunity for a fresh start and to put that to bed.
It's somewhat surprising that this positive news was not followed with further dillution for A N Other, but we know that won't be far off at a premium to "yesterday's close".
The now 4% rise today should be seen for what it actually is - which is a 50%-200% fall for long term holders here.
We know from past experience that there are "new" buyers and there are also "new buyers".
"New buyers" tend to be as enthusiastic about this DKL stock in the low season as they are in the high season, albeit they have very long memories.
Whereas "new" buyers tend to dump their entire holding at 7:01am on the morning of an RNS that does not fit their narrative.
dbentley, again some excellent points. The cpo facility is too much up and down like a yo-yo. The cashew facility will hopefully be more steady as she goes without so much month-to-month variation. There needs to be sustained good news over many months to get this back to where it should be.
They never learn, do they? How many times have this board been told that shareholders do not see more dilution as positive?
I see we have some new holders here, who are very welcome, but are perhaps shall I say a bit wet behind the ears - and that is not meant in any way derogatory. Unfortunately guys, this will not be the last time you see dilution here on a grand scale.
DKL have a lot of history with this, as soon as any positive newsflow is released, you can be assured that if it's not in that RNS, another RNS will follow one minute later with news that the BOD see this is a positive sign that shares are being issued at a premium to the previous close. In my time of holding, around half a billion shares have been created out of thin air.
Had we been told in January 2022 that there were major delays that are outside the control of the company, then there'd have been a chunky fall, but it would have been accepted and we move on. However, we were told that the facility would be fully operational by April 2022 and it's now 11 months later and it clearly still isn't (quite) ready.
That is the problem in a nutshell, no pun intended.
Secondary to that is the rival firm buying up all the FFB's in February - at least a few of which probably were bought from the DKL nursery - with the market then thinking another bad year for CPO is on the cards.
We've seen these drops before of course on the back of a prolonged period of selling and then holders just want out at any price.
On the positive side, we seem to have a fair chunk of buyers who have bought in on the back of this selling.
@rugs, yes I guess some will always slip through the net. Re positive news, the same mistakes keep getting made over and over, note the quarterly reporting for cashews as a good example whereas monthly reporting for CPO has been generally seen as a positive.
@DB, re your question of "how do we know they are a large holder? doesn't state it anywhere i can see."
It was an assumption based on the tweet at 10:29
All the sales action this morning was between 9:53 and 10:24 with over 800,000 volume. Even if they're not all the same person, the three chunky trades were still over half a million and the tweet suggests this is not the first tranche of sales, note - "Finished selling what I had left".
I agree on all other points.
Here is that tweet - https://twitter.com/Alastai85608932/status/1633414509573337088
A shame to lose another large/loyal holder.