Landkom is fast becoming one of Europes largest producers of high value agricultural feed stocks including oil seed rape (OSR) and wheat for the biofuel and food markets. The company's production is centred in Western Ukraine where the land is amongst the most fertile in the world. In 2007 the company will have planted 10,000 hectares of land for harvest in 2008.

Demand for feedstock in markets in Europe and the rest of the world is likely to outstrip supply for several years to come. European Union (EU) biodiesel, which has been mandated for a 5.75% biodiesel blend rising to 10% by 2020, is likely to result in a demand/supply imbalance in the world OSR and wheat market.

Landkom is well positioned to take full advantage of opportunities due to its geographical location in Europe, modern farming methods, low cost operations, better than average yields and flexibility of crop.

Landkom is a major positive contributor to the economy as we are now fully utilising former agricultural land which was fallow.

Raised 50.1million through its placing on the 15th of November 2007 at a price of 50 to 52p a share

Current Targets (Expected upgrade and update on planting in March 08)
Current rights to 50,000 hectares (10,000 planted) and a target to increase this to 350,000 hectares

Landkom Homepage

LKI will update the market on their progress in sept '08, but planting & land aquisition seem to be on target. Broker target is currently 118p. However, bad weather & a poor harvest look to be the only risk factors, in a market of high oil seed & wheat prices.
If they increase their land bank at the end of the year, it is probable that they will need to raise more capital, so share dilution a possibility.

That looks like good news on the summer harvesting agreements and a bit of additional revenue to come from the cereal crops already planted.

I suppose that was very positive. Why the fall then?

From what I read a few weeks ago, there is concern that the Ukraine is on russia's list of areas which may see troop deployments. Political uncertainty is knocking this one, imo.

I thought that is more positive.

broker target 118p.....lol, hilarious.

18p more like.....or 1.8p

Farmers have had a tough year sky high fertiliser and diesel costs. Big combines use 700 litres/day and big tractors some use 1000 litres/day then a really wet Summer trashing the crop and preventing any milling wheat premium and then once the harvest was in a collapse in commodity prices. For those that sold forward and managed to get a good crop they will be laughing but those selling spot with trashed crops won't be happy. It is a big worry if farmers or agribusiness gets damaged by the credit crunch. Farmers need a lot of working capital for wages, depreciation, seed fuel etc and if their credit lines or overdrafts get called in there won't be a lot of food for a huge population to get their teeth into, certainly more worrying than seeing a few bureaucratic penpushers getting redundancy.

Shareholders have give up but they have not judging by recruitment in Farmer's Weekly
http://www.fwi.co.uk/jobs/organisationvacancies/agriculture--landkom_international-20004085.htm

Yes, we are alking about one of Europe's largest producers of high value agricultural products... and the share price has fallen from 110 to 12.5p due to sentiment.

Big investors baught large chunk of this company at 100p earlier this year.

A couple of 100K folowed by 50k purchases during last tree days.

It has not fallen due to 'sentiment'. It has fallen due to fundamentals. Rising costs, falling commodity prices, poor harvest & politcal uncertainty. The sp would have taken a tumble, imo, even without the credit crunch. Maybe not as far, but this is a high risk stock.

It depends on what you mean by fundamentals.
Do you consider the valu of asset ZERO?
I thought assets worth 25-100p depending.

highest volumes ever during last few days.

is this 4x under nav? Much renewed interest and high volume alert. What's occuring? They're a very large company when you delve into them.

bought a few , will buy more if it gets over 10p. Quite bullish on these as broker had to collect off 3 different MMs - ie work the trade.

In which case you might have a problem selling them when the time comes.

how long willit take to get to 100p?

21/8/2010

Article in the Telegraph today features LKI as a potential beneficiary of food inflation.

LANDKOM

This Aim-listed company owns land in Ukraine that yields many wheat and some rapeseed crops. Unaffected by the recent fires in Russia and poised to benefit from its neighbours export restrictions, this company is high risk but has the potential for high returns. The companys largest shareholders are Invesco Perpetual and JP Morgan, and the share price has picked up in the last quarter with wheat prices.

This Company could outperform.......wheat prices up 100% and no damage from the Russian heatwave......efficiency up & costs down and the new sowing season ahead.
Even if yields are somewhat disappointing.....prices & lower costs will in my opinion will give LKI there best ever results....bearing in mind 3 years ago when the share price was around 60p and farming only half the acreage....they do stand a fair chance of producing much better results.....subject to the imminent update which is unlikely to have any bad news......twice the acreage & twice the price with big modern machinery & much lower cultivation costs in my mind equates to a big improvement......
I used to farm a fair acreage....hence the interest.

GOLDFINGER......Landcom trading statement due shortly....farming twice the area from 2 years ago with twice the price increase on wheat/grains suggests good times..... already showing profit on the Oilseed rape harvest (1st time ever)
Grain sales will also be in profit....very promising I think.
Their new sowing season is ahead of schedule....sounds like a no-brainer

Cheers hotshot was expecting it.

Just keeping fingers crossed the market in general doesnt throw a wobbler.

Theres certainly a lot of volatility at the moment and thats one thing Im not keen on unless Im intraday trading.

Which im not at the moment.

cheers.