Updates

New Britain Palm Oil

October 2012

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.

A rare setback for Papua New Guinea-based palm oil producer, New Britain, whose first half results were well below expectations. Revenues fell from US$404m to US$366m while pretax profit dropped an alarming 60% to US$63.6m. There was a â€œperfect stormâ€ of lower average crude palm oil (CPO) prices of US$1,100 / tonne versus US$1,122 / tonne and low palm kernel oil prices (US$1,476 versus US$2,096) and abnormally high rainfall, inhibiting workers ability to collect and transport the produce, reducing output 9% to 291,728 tonnes. The other factors included a 20% year-on-year appreciation of the local currency, the Kina against the US$, accelerated re-plantings from land that came with its Kula acquisition and most alarmingly ...

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Shaft Sinkers

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New Britain Palm Oil (April 2012)

New Britain Palm Oil - Shares oversold on 2012 PE of 8.6 (November 2011)

New Britain Palm Oil - Explosive growth from PNG palm oil grower (August 2011)

New Britain Palm Oil - Very strong growth expected from store expansion (July 2011)

New Britain Palm Oil - Gain to date: 153% (April 2011)

New Britain Palm Oil (November 2010)

New Britain Palm Oil - Acquisition transforms prospects for palm oil producer (April 2010)

New Britain Palm Oil - High quality palm oil producer looks good value again (December 2009)

New Britain Palm Oil (September 2008)

New Britain Palm Oil - First major acquisition since float (July 2008)

New Britain Palm Oil - Broker initiates coverage with 800p price target (April 2008)

New Britain Palm Oil - Exciting new issue in red-hot palm oil sector (February 2008)

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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