Market's view on M P Evans
Published on April 2024
- A stock watcher noted a significant increase in share price recently, which is seen as a positive sign.
- Concerns were mentioned regarding potential production issues due to dry weather in 2024, but it was also pointed out that high Crude Palm Oil (CPO) prices may offset any production drops, as yields remain around 6%.
- Observations were made about price stability in early 2024, with CPO prices reaching over US$800 per tonne, indicating a strengthening market.
- Some stock watchers expressed that earnings per share were slightly below expectations, yet they were pleased with the dividend payments.
- Discussion also highlighted a recent significant rise in CPO prices to over $800 and subsequent production increases, improving profitability.
- It was pointed out that market reactions to a price increase from $875 to $1050 in October seemed negligible, which could affect perceptions of the company’s stock value.
- A stock watcher commented on the formation of a ‘golden cross’ in stock patterns but criticized the wide bid-ask spread.
- Comments were made regarding the company’s risk profile, suggesting it has moved from ‘adventurous’ to ‘balanced’ due to repayment of debt, likely reducing the likelihood of large share price fluctuations.
- The dividend yield for 2023 was forecasted at 5.8% with an earnings yield of 10.71%, portraying the company as a well-managed entity with sound capital allocation.
- A stock watcher exited their position at a break-even point after three years, citing a desire for less risky investments.