Evil Knievil: Palm oil

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Evil Knievil: Palm oil

MP Evans (LON:MPE) reported its half year figures to 6/20 yesterday. They weren’t fabulous but given the revived palm oil price, noe $740, offer a clear pointer to the prospects of REA ordinaries (LON:RE.) and REA prefs (LON:RE.B). REA’s results are coming out on Friday. I’ll be astonished if the stock does not go up at least 10%.

There is stamp duty of 0.5% payable. But, on this occasion, I would not worry about that.

Do not forget that there is 13.5p arrears of preference dividend. So one could argue that the cost of the prefs is 40p where the yield is a healthy 22%. Ideal for one’s partner’s ISA.

*****

I have again bought Amryt (LON:AMYT) this morning, paying 220p. My target remains £10 (albeit not in 2020).


Comments (2)

  • philip baker says:

    I have been watching the palm oil price tick up and the REA preference shares tick down.
    My biggest concern is another passed dividend/interest payment this is already in the share price. ( in my opinion)
    The management have got used to the free headroom given by not paying the preference dividend. Once they have got used to this extra breathing room as with all benefits they will not give it up easily.
    I hold a reasonable chunk of these compared to the size of my stock holdings having been a holder for many years and having topped up at recent prices.

  • john lewis says:

    Guess your astonished Simon!
    However a decent bounce off 45 low on Monday so not all bad.

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