Powerflute Di Share Discussion Threads

[riggerbeautz] 16/3/2012 09:47

This will go back up soon.

[smicker] 16/3/2012 09:33

Tried to buy 1K worth through selftrade online. Wouldnt go through and told to contact them via phone

[moorsie2] 16/3/2012 08:44

very strange.....

[morkandmindy] 16/3/2012 08:34

how bizarre. Almost back to flat in real times on the bid/offer price.
Maybe MMs trying a shake out? Interesting though.

[stegrego] 16/3/2012 08:11

Woah, wasn't expecting this to drop back down 11 percent today, or any other day.

[moorsie2] 15/3/2012 22:09

Rigger - yes large volumes traded today. I fully expect this to kick on over the coming days and weeks

[riggerbeautz] 15/3/2012 18:53

Moorsie solid enough day and volume, expected slightly stronger finish but held a reasonable gain.

[britishb] 15/3/2012 13:14

And you're a clueless penny punter who has IMVHO absolutely no idea what he is doing.....good day to you.

PS haven't noticed your "Got this one wrong - I'm out for a thumping loss" posts on LRM or PDX.

lolololololol!!!! Oh oh lolololololol!!!!!

[matt123d] 15/3/2012 13:11

Thought it was too good to be true that you'd actually taken a position in something.

It will only take one guess, there is no trade. You're an accountant and too risk adverse to pull the trigger!

[britishb] 15/3/2012 12:55

PS See if you can guess what my big trade is Matt.

I won't tell you what it is because I dislike you but if you guess right I'll confirm it. I'll give 100,000 guesses...

[britishb] 15/3/2012 12:39

I've already told you Matt. I have only one position big enough to make any significant difference to my wealth. I think I may suffer very small losses over a long period or spectacular gains (much more likely) which could start any day. The last 2 days in that trade have gone my way big time. If the trend continues you'll see a whole enormous market collapse happen very quickly and I'll make more money than you can dream of....

[moorsie2] 15/3/2012 12:25

Powerflute powers upBy Graeme Davies, 15 March 2012

Finnish paper mill operator Powerflute enjoyed a year of stable trading conditions during which the sale of an underperforming asset bolstered the company's cash position, leaving the shares looking attractively priced.

The traditionally cyclical paper business experienced a "very good year in terms of market conditions", according to finance director David Walton with little fluctuation in prices and demand until the final quarter when economic uncertainty in Europe dampened demand. But 2012 has started positively as the eurozone crisis abated and pricing is tracking just below 2011 levels.

Powerflute's sale of its loss-making Graphic Papers business last May, which brought in €32.5m (£27m), has given the company a healthy net cash position and allowed it to invest in several capital projects last year. These will add 10,000-15,000 tonnes to its nominal 280,000 capacity and improve efficiency.

Moreover, strong demand for waste paper products from China has helped to put a floor under waste paper prices and supported the paper market generally. Powerflute itself uses virgin wood sourced from its Harvestia joint venture, which is run as a non-profit business for the benefit of Powerflute and its co-owner, biomass business Vapo. Mr Walton calculates that Powerflute is saving around €5m-€6m annually against the cost of its wood feedstock before Harvestia was established.

Collins Stewart is forecasting flat profits of €12.3m for 2012 and EPS of 2.6¢ (2011 €12.4m and 2.5p)


POWERFLUTE OYJ (POWR)
ORD PRICE: 26.5p MARKET VALUE: £77m
TOUCH: 26-27p 12-MONTH HIGH: 28p LOW: 13.75p
DIVIDEND YIELD: 4.1% PE RATIO: 9
NET ASSET VALUE: 20p NET CASH: €19.1m



Year to 31 Dec Turnover (€m) Pre-tax profit (€m) Earnings per share (¢) Dividend per share (¢)
2007 116 9.8 8.0 3.36
2008 108 3.6 2.8 nil
2009 254 28.0 20.2 nil
2010 106 4.9 -13.3 1.00
2011 122 12.4 3.5 1.30
% change +15 +156 - +30
Ex-div: 26 Apr

Payment: 18 May

£1=€1.20



IC VIEW:
Powerflute is enjoying steady trading conditions and plans to buy back shares this year, reflecting management's belief the company is undervalued. We concur. Buy.

Last IC view: Buy, 28p, 18 August 2011

[matt123d] 15/3/2012 11:13

So you've taken a position here then!

[britishb] 15/3/2012 10:05

I agree Stegrego. Mostly very positive.

Pretty low P/E for continuing biz. Almost quarter market cap in net cash. Huge buyback makes me think this is much more likely to go up than down "Our intention to return capital to shareholders through an increased dividend and a share repurchase programme reflects the Board's belief that Powerflute's current market value does not reflect its true intrinsic business worth."

[moorsie2] 15/3/2012 09:08

Welcome onboard Stegrego.

Your observations are spot on.

Got a feeling this will revalue over the coming days and weeks as more coverage is given to the share and its fundamentals

[stegrego] 15/3/2012 09:01

Picked some up here this morning.

Sub 10 pe, cash in bank, 5 percent yield, share buy back coming, sector upturn possibly ongoing.....

What's not to like?

[riggerbeautz] 15/3/2012 08:05

There we go, little mark up at start, will come back and see where it ends the day.

[riggerbeautz] 15/3/2012 07:51

Hope so Moorsie, looks ok to me, will let this ride on these results now and see where we are at the end of the process. Cash in the bag and profits improving is very encouraging.

[moorsie2] 15/3/2012 07:22

Results , share buy back, dividend and share consolidation should push this share on now.

No developments in projects but then again none is factored into the price anyway

[moorsie2] 14/3/2012 16:00

we will see at 7am tomorrow then! looking forward to reading about progress

[riggerbeautz] 13/3/2012 11:31

Well for what it's worth had another flutter and few other odd buys appearing since I did. Can't see it being much different than the trading update, so figures should be ok, just depends what value the market subscribes to anything in the future.

[moorsie2] 13/3/2012 08:54

Difficult to know - the key issue will be if there are any developments in new projects. Heres hoping....

[riggerbeautz] 12/3/2012 19:00

Moorsie, what do you reckon come thurs results, still ahead of expectations?

This stock is very under the radar considering trading update and results this week.

[moorsie2] 10/2/2012 15:53

Just looking at the trading statement - the expectation is to match if not outstrip H1 Ebitda in H2. 9M Euro was was H1 so lets say 20M Euro for full year based on 125 M turnover.

20M Euro = £17M

Fair Valuation for industry = 6.5 times Ebitda = 6.5 x 17 = £110M

290M shares in issue therefore 38p per share.

So at this moment the share is trading at only 58% of fair value.

Added to this is the very strong capital structure that will allow it to do a deal on the next good opportunity that comes its way then there is a lot of upside in this share and very little downside.

My solid bet for 2012..

[moorsie2] 09/2/2012 11:26

Some large trades going through this morning..