||SHS NPV (DI)
||EPS - Basic
||Market Cap (m)
|Forestry & Paper
|gorilla36: Shakey - I would hope not, but for the moment the chart does not look very encouraging. Fundamentals here are good, but as I have found to my cost before, there can still be a disconnect with the share price.|
|78paul: hi im a POWR shareholder.
the acquisition that this company made last year has transformed them into a cash cow. I dont have the figures to hand but Free Cash Flow in the last set of accounts was very very high, enough to pay off all debt in a couple of years so they could be completely debt-free with a great balance sheet, then after that i predict a hike in dividends, special dividends and/or share buy-backs.
i also predict the next set of accounts to show a greatly strengthened balance sheet which is what the markets like to see. the share price currently could trickle down further but this only presents a buying opportunity.
all in my humble opinion of course !|
|alphabeta4: Looks a good time to add/come in to me - share price and company performance have diverged. Why would there have been a 90p bid if they didn't think it was worth more (and it involved a company insider)|
|jon123: yes hence the share price is higher than the bid|
|wildshot: With the current price trading over the 90p offer price I think this is a non-starter.
As an investor I think 90p is undervaluing my investment. For this to be taken seriously there needs to be a nice premium for a takeover to take place.|
Powerflute is successfully integrating Corenso and, at the same time, driving improvements in Savon Sellu’s performance. We upgrade estimates again following H115 results and there is momentum for a good second half performance. Unsurprisingly, the share price is well ahead so far this year but, with further operational gains to come, further progress remains a possibility.
Powerflute is a holding company established to acquire and improve underperforming businesses and assets in the broadly defined international paper and packaging sector. Savon Sellu is a niche producer of packaging fluting papers. Corenso is a leading global integrated manufacturer of coreboard and cores.|
|interceptor2: I was reading the recent trading update again, significantly ahead so early in the year, one question came to mind. Why didn't I buy a more substantial holding here,so added again today to rectify the situation.
In my experience, when a company issues such a bullish trading update so early into the new financial year, the odds of a continuing share price advance upto the release of full year results next March are high imo.
Results of AGM released, directors remuneration is a pleasing read and seems rather modest.|
|moorsie2: This aquisition seems to be at 4 times EBITDA which is a great deal considering most of the market trades around 6.5 to 7 times EBITDA
at a share price of 38p prior to this announcement and an expected 22M Euro EBITDA - the valuation was 6.3 times
Add in the acquired business (20M +22M from exisiting operations) = 42M Euro EBITDA. At a multiple of 6.3 times that equals a share price of 72p by my calculations.
Great value to be had here before even synergies , efficiencies and growth plans get added in|
|rathkum: Powerflute upgraded by Numis
30th June 2014, 13:26
Numis has upgraded its recommendation on Powerflute Oyj [LON:POWR] to 'buy' from 'hold' following today's pre-close trading update from the paper and packaging group which showed that the strong first quarter trading performance has continued into the second quarter.
"The Q1 update issued ahead of the AGM on 29 April was positive in tone, with production c.5% ahead then in underlying terms," the broker said.
"We believe that this rate of production growth has been sustained in Q2 and that this update reaffirms the positive comments made then."
Analysts have upped their target price to 45 pence a share (from 37 pence) but left their forecasts unchanged.
The shares have risen by almost 20 per cent over the past three month period.
At 1:23pm: [LON:POWR] Powerflute Oyj share price was up 0.5 pence at 39 pence.|
|moorsie2: Ok heres my analysis of the share price
290 shares in issue at 29p each = mkt cap of £84M
2013 Ebitda of 17.4 = a value multiple of 4.8
The market average in Europe for a multiple is 6.5 and in USA 7.5 for this industry. (Especially as the mill is recently well capex invested)
at 6.5 = £113 Mkt Cap or 39p each
at 7.5 = £130 Mkt Cap or 45p each
However that is backwards looking
2014 EBITDA estimates should be circa £22M (based on Q1 trading and average mill returns)
2014 est of £22m x 6.5 = £143 Mkt Cap or 49p each
x USA multiple = 57p each
Therefore fair value on this share is circa 50p to 55p based on 2014 projected earning and industry average multiples
A good time for new investors to get in|
Powerflute Di share price data is direct from the London Stock Exchange