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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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REA Holdings - Huge eps growth triggers spike

November 2010

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.

  • Epic Code:
  • RE.
  • Price:
  • 661p
Shares in palm oil producer REA, the front-page write-up in July at 494p, have soared almost vertically by over 200p at one point following excellent half year results, which showed pretax profit rising 51% to US$20.05m on turnover that rose 55% to US$50.3m. Eps rose 56% to 38.8 cents. The strong performance reflected both an increase in average selling prices from US$530 / tonne to US$711 per tonne but also an increase in output from 231,000 tonnes of crude palm oil to nearly 247,000, albeit slightly below budget. The fully titled area has increased from 52,000 to 61,000 hectares (ha) in H1, of which 31,000 ha is planted up. Its target is to plant up a further 8,000 (ha) over the course of 2010 and 2011, while ongoing expa ...

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Related Articles

REA Holdings (October 2011)
REA Holdings - Palm oil firm looks cheap compared with rivals (March 2011)
REA Holdings - Palm oil producer eyes steep increase in growth (July 2010)

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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