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Change of fortunes for plastic industry
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sandbox
Senior |
26-Jan-2007 08:50
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Great... would be a good time to accumulate don't you think? |
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sandbox
Senior |
25-Jan-2007 13:16
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victorian, Any idea when they will be reporting their results? Thanks |
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bulbideal
Member |
16-Jan-2007 10:19
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Hi guys, Im new to this plastic industrial. Is it the drop in oil price will lead to lower material cost for plastic. Hence enhence the margin for plastic companies and caused a rise in their share these few days. In view of current uprising of oil trend, isn't it that the price of plastic companies will drop again? Sorry if it sound silly, i would like to heard the members advice if this is the relationship between plastic and oil price? |
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victorian
Member |
02-Jan-2007 23:00
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Yup, should wait a little more. In anycase, there are about 8 plastic stocks and all trading at 52 week low and really bomb out. The good thing after more than a year, most of these coys would have restructure align their cost structures to ensure they get their margins back up. So it's a cost game. Just look at their financial reports to see the %decrease in operating expenses, COGS. Those with little gearing too will be in an advantage. Most are also trading below NAV which fits one of my key critieria. In a bombout industry like plastics, those with significant NAV discount, increase % in cost decrease vis-a-vis rev and profit (or cutting losses), little gearing will benefit when the sector recovers & share price will also move faster from a % pt of view. Regardless of the oil price, I expect the stronger coys within the industry with strong management, strong branding, strong customer base to come out stronger in a hurrican as long as their biz model is strong. Those that cannot manage their cost in this new environment, don't bother even looking at investing cos even in good times, can't max out profit either. Meiban definitely fits this criteria. ROE still high by industry standard. TTL coming out from losses and has a proven new management team led by new CEO formerly from Fu Yu so I have very high expectations. Anyway, trading at 8-9 cents 4-5cents below NAV so almost riskless IMO. Just have to be patient |
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Livermore
Master |
02-Jan-2007 15:04
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But I don't think crude oil price will settle down to US$40 - US$50 a barrel within the next 3 years. The critical year to see is in 2009 - 2010. Let's see...... |
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giantlow
Master |
02-Jan-2007 14:20
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might have an upsurge in oil prices in 2007 before it settles down at between 40 to 50. i am also eyeing on meiban, but i think gotta wait a little longer. |
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victorian
Member |
02-Jan-2007 11:31
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turnaround stock coming off losses to profitability. Trading 40% at 9cents. 4 cent discount to NAV. Volumn though still low, steady accumulation in the last 2 months. Question of time before it recovers nicely esp with rebound in sector. Looking at Meiban, posting growth in its P&L so carnage of oil prices on these counters should be over if not reached its bottom. |
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singaporegal
Supreme |
31-Dec-2006 21:27
Yells: "Female TA nut" |
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Very bad volumes on this counter... TA people should avoid |
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victorian
Member |
31-Dec-2006 11:08
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TTL was the worst performing plastic counter in the meltdown of plastic stocks in the last 1 year when oil prices shot through the roof. Looking the numbers, Meiban, Hi-P, Sunnydale etc are showing positive growth & turnaround in their earnings which I'm sure has been due to lots of restructuring and transforming. Mostly trading at 52 weeks low & trading below NAV for most coys, sector represents clear opportunities for pick up considering oil price retreat, many of these coys would have restrcutured. TTL is definitely one of them. Lost money last FY but restructuring . An extemely quiet counter trading at 7-9 cents for months but recently looking at volumn over the last 2 months, picked up with obvious accumulation. Insiders I'm sure who know the coy is turning around with profits to report in Feb when it announces it results. Charts extremely low but getting out of bear trend. ANy comments by chartist? |
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