7 early 8 early I got SMS saying to buy.... from Kenanga.

and now... boom boom pow!

LOL!

Lol which one? Orna.. not much change.

or..

Pwroot.. still keep..

Going up higher on low volume.. seems weak.. maybe run out of sellers already

The 'kicker' is they announce higher divvy..

1Q18 core PATAMI (-48%) is below estimates, impacted by higher raw material and marketing costs. No dividend was announced, which was also a miss. Despite poorer results, we believe group earnings could benefit in the coming quarters with an improvement in commodity prices and marketing initiatives as they had historically managed to secure better sales despite poor seasonality. Maintain OUTPERFORM with a lower TP of RM2.70, from RM2.90 previously.

As at 30 Sep 2016 (Annual Report 2016) he owned ard 47.5M shares (under his name, YSP, KZY etc) or 9.8% shares while as at 20 Oct 2015 (Annual Report 2015) he owned ard 14.2% shares or 48M shares. Thus his shareholdings is quite consistent at RM48M+ during last 2 years. I think his average cost shall be ard RM0.70-RM0.80 for this batch(his first entry price in 2014/2015 was at least Rm1.50+)


He claimed he bought a large batch of 50.5M shares at 3.5 cents before the shares suspended in June 2017 and now is holding ard 86.9M. Ok maybe he sold 10M+ shares earlier (thus reducing from 48M to 36.4M), still his average cost shall be as follows:

1) Old batch of 36.4M at Rm0.70 to Rm0.80 (ard Rm25.48M to Rm29.12M)
2) New batch of 50.5M at Rm0.035 (RM1.7675M)

So total shall be ard Rm27.2475M to Rm30.8875M

Divided by 86.9M shares, his average cost shall be ard RM0.3135 to RM0.355

their sms read: recommend to buy Pwroot. Recent price drops & export growth leads to rm2.70. TP>30% upside. High Fy18E dvd yld of 5.9%

I go see their research...

First para
That's the first para.

1Q already 48% below estimates. => This goes to say that either Pwroot performance was so bad or their estimate was so terribly rocket.

No divi announced, which was also a miss ==> *rolleyes*

Note their TP of 2.70 is much lower than their previous tp of 2.90. (they gave this TP in May)
So Ah Gark kor kor... lemme get this korek....

Pwroot miss their estimates by 48% (almost half hor), disappointed with no dividends, so they decided to lower the tp from 2.90 to 2.70 (liddis is call... err... downgrade yes?)

korek so far?

but then.... since Pwroot price already drop so much.... this NOW EQUATES that Pwroot is a buy... since the tp is more than 30%....

errr.... korek, korek?
YES??

This kenanga simply shoot.. go see announcement.. got 4 cents divvy ex 18 Sept... apa no dividend? 

1Q was bad, I admit it.. raw material cost eat up 2-3 mil and 'marketting' activities took another 2 mil or so. Sales did increase YOY..

Maintain OUTPERFORM with a lower TP of RM2.70, from RM2.90 previously.

For those who are curious what kenanga wrote...

Link

Can you see the 2018 Estimates are tweaked a bit lower?

LOL! That's still a very HIGH estimate... one which I reckon Pwroot will most likely not meet.

Haha you might be right.. the divvy is good tho.. I will continue to hold

Paper price is going up, so you have contango, raw materials bought cheaper earlier, now can sell for higher price

High demand for box due to more online selling..

Paper and box shortage in China, due to above.. blame alibaba ...

Link 1

Link 2

How long this rally will last, no one knows, but china paper producers is already ramping up production

Orna buys paper as a raw material and is 60% of cost, so if the paper price downtrend, they can be caught in reverse situation.

Jump from RM 1 to RM 1.4X is scary.. 

Cousins are Muda and boxpak (But Orna have better fundamentals)

paper industry is sleepy.. no analyst.. 

gark paper price has gone further up since you first mentioned it.. 

yerr..iris..mao testing people meh

What's wrong?