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About a couple of years ago, I took it into my head to go very bullish on REA (RE.) and its Indonesian plantations. The target price was of the order of 600p. In the event, the palm oil price has been declining ever since. As a result, the share price has declined from 330p to, now, 135p, capitalising the entire shebang at £55m.
This is surely unduly pessimistic.
However, and I here refer to a Hardman and Co. note prepared last week, the time has come to pick up a few. And wait.
I played cautious and bought a further 50,000 9% prefs (RE.B) at 64p. The price is down here since the dividend has been deferred.
The Hardman paper notes the losses incurred in recent years but forecasts a return to profit in YE 12/20 and £22m for the following year.
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