Market's view on Dekel Agri
Published on April 2024
- There are positive expectations for Crude Palm Oil (CPO) prices due to limited availability of land and increasing regulatory restrictions which could keep prices at remunerative levels.
- Palm oil has distinct advantages over other vegetable oils, such as higher production efficiency and versatility, which could drive future demand growth.
- Concerns have been raised about the viability of a rubber processing startup founded by a director, with suspicions of potential conflicts of interest in transactions.
- Doubts exist regarding the profitability of cashew peeling operations due to minimal price differences between peeled and unpeeled cashews.
- Questions are raised about the existence of a cashew nut operation, which was valued based on projected future cash flows, suggesting potential misrepresentation.
- There are implications that company resources might be misused for personal benefit by directors, including luxury car expenses.
- Continuous fluctuations in production and price strategies lead to questions about the company’s long-term strategic direction and purpose.
- Palm oil prices are reported to have reached a 15-month high, potentially boosting the profitability of palm oil production.