Powerflute Di Share Discussion Threads

[moorsie2] 06/5/2011 17:29

The volumes being traded are highly impressive.

Mature reflection and recalculations (aided by some reporting?) will ensure that this remains a buy for the next week at least until the share price is into the mid 30's

Hats off to the management in making this all happen

[riggerbeautz] 06/5/2011 11:57

Only a token grasp of the market Moorsie, hence novice question, just noticed the comment there was a trend for wider corrugaters and POWR's mill was going to produce up to 3300mm, whilst the new machine would be capable of 3600mm.

Yes shutdown was mentioned as routine yearly maintainance, which is common for any manufacturing plant.

Meanwhile ticking along in the right direction today.

[moorsie2] 05/5/2011 16:55

Not that big - and I can't see it carrying a premium as it is sold per tonne regardless

It just steals a march on some competitors and therefore creates a easier sell to those few new jumbo corrugator plants.

The shut should not really be that much of an issue as they should have been building stocks to supply their customer base during this period so should not affect sales.

[riggerbeautz] 05/5/2011 16:38

AGM's normally dull affairs, this looks to have an active agenda. One thing I didn't notice mentioned the last few days in any RNS was the Savon Sellu mill is due to have a shut down in May, during which it will rebuild it's line to encompass wider corrugaters.

Presumably this will be a niche market with higher margins? Any ideas how big the market might be Moorsie?

[edurtreg] 05/5/2011 14:08

ssssshhhh! You will wake the neighbours.


ed.

[moorsie2] 05/5/2011 14:07

As I said I cannot see any reason for price resistance until some holders decide to lock in profits post 30p...

[riggerbeautz] 05/5/2011 12:39

Thanks, was being lazy. Kicking in at 23 now, should be on for a good few days strength.

[moorsie2] 05/5/2011 10:20

no -

look at the LSE website and you can see the volume history.

Granted the rights issue has created a large amount of new shares but this sort of volume is unprecedented.

[riggerbeautz] 05/5/2011 09:58

See the AT's munching away early volume again. Moorsie not been around long enough to know, but has volume gone from near zero to this on prior news releases?

[edurtreg] 05/5/2011 09:18

Thanks Rigger, I will maintain the peace and quiet unless I find anything interesting to add (don't hold your breath) and am otherwise occupied on SLE, that I hear is about to announce some very interesting news. DYOR

ed.

[riggerbeautz] 05/5/2011 09:08

Morning ed, all the threads I post on are generally quiet, bar one ;) - though that has turned into the bookworm clubs appreciation society.

Bit more in the Irish Independant

[riggerbeautz] 05/5/2011 09:01

Nice to see the deal got heavily reported around the newswires and trade press, this is probably the best explantion for anyone looking in.

"The Scheufelen companies, which represent the whole of the Graphic Papers business segment, were acquired in January 2009 and during two years of ownership by Powerflute, good progress has been made with improving performance and restoring profitability. The business was heavily impacted
by developments in worldwide pulp markets during 2009 and 2010 and we currently expect these challenging conditions to prevail for the foreseeable future. Shortly after the completion of the rights issue and placing in November 2010 an approach was received and although the Group would normally expect to own a business for a longer period, we concluded that Scheufelen would be better placed to withstand the challenges it faces as part of an integrated pulp and paper group.
The disposal is consistent with Powerflute's strategy to create value for shareholders through the acquisition and restructuring of underperforming paper and packaging businesses. The cash consideration of €32.5m represents a significant return for Powerflute on its cash investment in Scheufelen.
Approximately €9.0m of the proceeds from the disposal will be applied to reduce Powerflute's borrowings with the remainder retained as cash. On a pro forma basis following receipt of the first instalment of the cash consideration and repayment of existing borrowings, the Group will have net
cash of approximately €5.0m, consisting of cash and cash equivalents of approximately €30.0m and remaining interest bearing loans and borrowings of €25.0m.
In the year ended 31 December 2010, Graphic Papers achieved sales of €205.1m and reported an underlying operating loss of €6.2m. The Group has recognised a non-cash impairment charge of €22.1m net of deferred taxes in its income statement for the year ended 31 December 2010 to reduce the carrying amount of the net assets of the Graphic Papers business to their recoverable amount
less costs to sell. This is effectively a reversal of a portion of the non-cash gain of €33.0m recognised on the acquisition of Scheufelen in the year ended 31 December 2009. The net assets of Graphic Papers at 31 December 2010 after recognition of the impairment were €25.9m.
The transaction remains subject to certain closing conditions, including release of security over the assets of Scheufelen by Powerflute's lenders. Completion of the transaction is expected to take place within the next few days.
Powerflute will announce its financial results for the year ended 31 December 2010 on Wednesday, 4 May 2011.
Commenting on the disposal, Dermot Smurfit, Chairman of Powerflute said:
"We are pleased to announce the disposal of Scheufelen to Paper Excellence and believe this represents a successful outcome for both the customers and employees of Scheufelen and for Powerflute's shareholders. Scheufelen will benefit as part of an integrated pulp and paper group and will continue to prosper under new ownership. Powerflute has achieved a significant return on its investment in a little over two years – a strong validation of our business strategy. On completion of the disposal, Powerflute will be debt free on a net basis and will have the capital structure and resources to continue to pursue its strategy of seeking opportunities to acquire underperforming businesses in the paper and packaging sectors." (Savon Sellu Oy)

[edurtreg] 05/5/2011 08:56

agreed Moorsie2, and such a quiet thread.

ed.

[riggerbeautz] 05/5/2011 08:56

Moorsie o/t bit bearish in general, but RST has been a patient hold for me. Mainly go for high risk miner/oiler plays, listed on TSX or ASX, watching a good few but waiting. Of few London listed I do hold, wouldn't start buying now, bar possible near term exception of RRL (don't post on the thread though).

[moorsie2] 04/5/2011 20:57

Got anything else on your radar Rigger?

[riggerbeautz] 04/5/2011 20:36

No worries ed, did try, perhaps you might listen next time, i'm getting good with these snails, mail you later just watching the game ;)

[edurtreg] 04/5/2011 17:22

Paying attention indeed Riggerbeautz, just a bloody shame more attention was not paid back in January. Good luck, fully expect this snail to slide it's way to 50p soon enough.



ed.

[moorsie2] 04/5/2011 17:18

Getting the attention now that this is seriously undervalued.

I have no doubt that this will run all the way to 30p and possibly beyond

[davebowler] 04/5/2011 16:42

Nice finish, with massive trades going through.

[riggerbeautz] 04/5/2011 15:29

Chunky trades showing up this afternoon, someone paying attention.

[riggerbeautz] 04/5/2011 09:06

That looks about right to me, it's amazingly quiet, which shows the p.i herd are not really here either.

Averaged up anyway and happy to ride the up's and downs for awhile, anyone who pays a bit of attention here only has to look at the last years RNS releases to see what is happening. No real need to spam threads though, really the results speak for themselves. They just need a bit of P.R for that.

[moorsie2] 04/5/2011 09:01

about 28-30p would be a fair range for this to take a breather - but anything below that is serious value

[moorsie2] 04/5/2011 08:56

its a complete no brainer

[riggerbeautz] 04/5/2011 08:50

Moorsie you have your rerating in progress, the AT's kicked the bid to 20p so mini breakout here; will be interesting to see how much volume kicks out today.