Secondary Recommendation

MP Evans - Palm oil business to double production by 2025

March 2018

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Most investors are scared off by agricultural businesses, citing low returns on investment, volatile prices and weather risks but a notable sweet spot is palm oil with MP Evans, an Indonesian-based producer, having seen its shares rise strongly with the catalyst being two bid approaches with the last one being at 740p a share in October ’16 by multi-national Malaysian palm oil group, KLK. The latter also acquired a 10% stake, which it’s retained either on the expectation of further outperformance or with a view to another tilt should Evans slip up. But that seems unlikely as, following significant land purchases and new plantings, annual production is forecast to double from 654,100 tonnes of fresh fruit bunches (FFB) – a key yardstick - ...

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MP evans (December 2024)

MP Evans - Investors valuing its palm oil plantations at 40% discount in spite of growth (June 2024)

MP Evans (November 2022)

MP Evans (August 2022)

MP Evans - Massive eps upgrades as palm oil prices soar (May 2022)

MP Evans - Rejects 740p a share offer (January 2017)

MP Evans (July 2013)

MP Evans (January 2013)

MP Evens (December 2012)

MP Evans - Trading at 34% discount to NAV (June 2012)

MP Evans - H1 profit up 86% (November 2011)

MP Evans - On track for big production increase (July 2011)

MP Evans - Rise in palm oil prices and planted up area to drive eps upgrades (December 2010)

MP Evans - Higher prices offset lower production (June 2008)

MP Evans - Expanding palm oil producer (December 2007)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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