Powerflute Di Share Discussion Threads

[saucepan] 15/3/2013 19:14

One of the downside considerations with POWR is that they do seem rather prone to mill breakdowns and maintenance outages and these can have a huge negative influence on the bottom line.

I thus tend to feel that another profit warning is never very far away.

[moorsie2] 14/3/2013 10:22

Ok - but at least that note's target price ties in with my value calculation and analysis.

this has to break out soon - look at paper packaging companies in North america and Europe - everyone getting revalued and most at long time highs.

has to be value here

[philo124] 14/3/2013 10:11

No, but forecasts are close to shown on Digital Look, if there's any
other specific, i will try to answer it. Target Price 42p, i guess you
might have wanted to know. I am not going to Buy at the moment,but that
doesn't mean anything.

[moorsie2] 14/3/2013 08:45

Can you post that note PHIL?

thx

[philo124] 13/3/2013 18:53

I think if i were to buy it would have be for long term. There was a note out
this am with punchy target; i am not so sure.

[saucepan] 13/3/2013 10:17

Thanks, Moorsie; clearly much more informed than me. Good luck. I will keep POWR on my watchlist.

[moorsie2] 13/3/2013 10:04

Still holding.

This is a long term play. Last year's trading performance was already built into the price and like most share prices its about forward looking expectations.

2013 should be a much better for the main asset the mill, and the real opportunity will be making an acquisition at the right price in 2013. The share is only trading at about 4.8 times 2013 expected EBITDA. Add to that a net cash position and this has an intrinsic value more like 45-50p.

[saucepan] 13/3/2013 09:53

Not me, PHILO124

I exited a good while ago, on lack of momentum, to chase other prospects.

That does not seem too bad a decision, as the stock is still stuck in a very tight trading range.

In fact, the trading range is getting tighter: that is a huge triangular consolidation on the chart stretching back to mid 2011.

Results look very pedestrian on a quick glance: if anything, they might herald a break to the downside, so I cannot see myself being tempted back in.

What did you make of results?

[saucepan] 03/10/2012 14:06

I bought a few last week. I like the value to be had. I also think the share price has consolidated long enough in the 20-25p trading range and should soon try to break out: upwards, I expect - based on the progress of the business. Nice yield, too :-)

[badtime] 27/9/2012 20:21

Anyone in here?

[stegrego] 03/4/2012 22:32

Just create an account, it's free.

[riggerbeautz] 03/4/2012 22:05

Stegrego, need to be logged in to read. Anything interesting in it?

[stegrego] 31/3/2012 10:58

New Edison note

[riggerbeautz] 27/3/2012 20:31

Well if they still have subscribers, can't have many that follow up the tips lol

[moorsie2] 26/3/2012 20:07

I see Shares Magazine have run an article on POWR in its latest edition this week.

Buy recommendation from them

[riggerbeautz] 23/3/2012 14:31

Moorsie got your overhang answer, looks like Henderson taking profit put the stall on it with low volumes traded.

Snooze mode on....

[moorsie2] 21/3/2012 09:13

Very surprising that this has not kicked on from last week's results.

Must be an overhang....

[riggerbeautz] 17/3/2012 19:58

Powerflute powers up
By 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

[riggerbeautz] 16/3/2012 16:16

Yep someone wants to hoover at this level. Still paying above the bid with no stock.

[riggerbeautz] 16/3/2012 10:26

Really don't sweat the daily stuff, this is due a rise however long it takes, forget the trading tricks, obvious false price at mo. Set yourself a decent profit target and wait until it gets there :)

[smicker] 16/3/2012 10:22

Yep, Tried again and still cant buy

[morkandmindy] 16/3/2012 10:18

wont even give me a quote for 1000 shares (£260 worth!!) ... that tells me all i need to know.

[morkandmindy] 16/3/2012 10:17

i agree. Looks like they filled a couple of big orders on the back of that panic selling spree which was probably iniciated by the MMs. Looking good IMO