Time to buy29 Dec 2014 10:27
With the recent sell off and SP fall now followed by a rebound in both Palm Oil & Cattle Prices this is starting to look interesting especially with take-over activity still high in the sector. PEG is only 0.57, and limited borrowing
Recent IC Article -- EIGHT GENUINE GROWTH BUYS
MP Evans
While palm oil producer MP Evans (MPE) has made it past the Genuine Growth screen's 3-month rising-forecasts test, the most recent revisions to brokers predictions have been downward due to weather-related woes. However, other external factors have put a more positive shine on the company's shares, namely the takeover of rival New Britain Palm Oil at an 85 per cent premium to its share price prior to the bid.
Broker Peel Hunt points out that the $20,000 per hectare value put on New Britain's plantations compares with a valuation of about $10,000 per hectare currently being applied to MP Evans' land. What's more, the New Britain bid is just the latest takeover in a wave of consolidation sweeping the sector. Spinning off an Australian cattle business could also aid sentiment towards Evans and the long-term outlook for its young estate is encouraging despite recent weather-related set backs.
Last IC View: Buy, 440p, 23 October 2014