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Six small-cap value picks

A housebuilder to play the seasonal sector rally, a crude palm oil producer benefiting from the sharp rally in CPO prices, a tech company that has just sold off a major holding for a massive premium and more
November 16, 2020

â–  Own production up 6 per cent year to date.

â–  Crude Palm Oil average price 26 per cent higher.

Anglo-Eastern Plantations (AEP:560p) has issued a bullish third-quarter trading update that points to a major profit recovery this year, the primary reason why I included the shares, at 570p, in my market beating 2020 Bargain Shares Portfolio.

Anglo’s primary activities are crop production and processing of crude palm oil (CPO) and some rubber from 16 plantations across Indonesia and Malaysia. The company has extensive landholdings amounting to 128,200 hectares, of which 72,696 hectares is planted. CPO, together with its related product, palm kernel oil, is derived from the fruit of the oil palm and is one of the four major vegetable oils. Non-food applications include use in bio-diesel and oleochemicals.

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