Goodpack

[greengiraffe]

why goodpack slumped today?? Any news coming out?

This counter has recovered since. I can't help wondering is it because a smart trader accidentally key in the wrong symbol and sell in bulk? It seems like near closing time someone is dumping a million shares.

Anyone pick up during the slump? Hehe time like i will be hesitate wondering do i don't know something that other people knows etc.

Goodpack was the victim of S&P index rebalancing on Friday. Note that volume was very heavy y'day amidst the Cyprus storm and it actually open 9 cents higher at the start of trade.

The rest is history. Gd for anyone that pick up the selloff.

[l0nEr]

Yeah especially the people who picked it up at 1.595... even 1.68 didnt look that bad given the current trading price now. Still a good stock to hold.

Question is... Goodpack isnt in MSCI Singapore index or the FS STI index either. Which index is it in, which resulted in the sharp sell off? Is there a S&P index for Singapore?

[portuser]

The following Nextinsight article in 2008 explains how Goodpack's founder, David Lam, came out with the idea of transporting rubber efficiently and in an environmentally friendly manner.

http://www.nextinsight.net/index2.php?op...&itemid=79

Goodpack's original patent had expired, and the current patent, adapted from the original, is four-year old. Goodpack's own assessment is that new IBC players are unlikely to emerge, given Goodpack's head start and its 30% share of synthetic rubber movements.

[desmondxyz]

Any idea why goodpack slumped today? slumped with unusually high volume doesn't seem to be good...highest volume in 2 years.....

[l0nEr]

Any idea why goodpack slumped today? slumped with unusually high volume doesn't seem to be good...highest volume in 2 years.....

no idea. let me know if you figured that out too...

i think some fund (<5% stake) probably pushing everything out. Last month there was also a similar 'flash crash' of the stock.
This stock usually volume quite thin, so with the strong selling can plunge very sudden. At least we know there are people who are buying at 1.65 range. Selling pressure very strong.
3,104 lots done at SGD1.65.
666 lots done at SGD1.66.

[l0nEr]

okay.. now we know who is selling.... but only on that one day...hmm
Capital Group sold 0.4% or 2,246 lots.

[junming82]

Goodpack is definitely a good stock with good financial metrics and worth another look.

Below are articles giving more details on Goodpack:
http://valuestocksinvesting.blogspot.sg/...stock.html
http://valuestocksinvesting.blogspot.sg/...pdate.html

[mkmk]

http://infopub.sgx.com/FileOpen/Goodpack...eID=260241

PROPOSED ISSUANCE OF S$25,000,000 4.15 PER CENT. NOTES DUE 2018 (WHICH ARE INTENDED TO BE CONSOLIDATED AND FORM A SINGLE SERIES WITH THE S$50,000,000 4.15 PER CENT. NOTES DUE 2018 ISSUED ON 7 AUGUST 2013) PURSUANT TO THE S$600,000,000 MULTICURRENCY MEDIUM TERM NOTE PROGRAMME OF GOODPACK LIMITED

Goodpack Limited (the “Company”) is pleased to announce that it has priced S$25,000,000 4.15 per cent. Notes due 2018 (which are intended to be consolidated and form a single series with the S$50,000,000 4.15 per cent. Notes due 2018 issued on 7 August 2013) (the “Series 007 Tranche 002 Notes”), to be issued under its S$600,000,000 Multicurrency Medium Term Note Programme (the “MTN Programme”). Oversea-Chinese Banking Corporation Limited has been appointed as sole lead manager and bookrunner of the Series 007 Tranche 002 Notes.

The principal terms of the Series 007 Tranche 002 Notes will be follows:

Issue Size: S$25,000,000
Issue Price: 99.60% of the principal amount of the Series 007 Tranche 002 Notes, plus accrued interest from, and including, 7 August 2013
Interest: 4.15 per cent. per annum, commencing from, and including, 7 August 2013
Maturity Date: 7 August 2018

The issue date of the Series 007 Tranche 002 Notes is currently expected to be on 28 October 2013.

The net proceeds arising from the issue of the Series 007 Tranche 002 Notes (after deducting issue expenses) will be used for the purpose of financing the general working capital, capital expenditure and corporate requirements (including acquisitions and investments) and/or refinancing the borrowings of the Company and/or the Company and its subsidiaries.

(not vested)

[portuser]

Goodpack has been borrowing heavily, very much ahead of need, it seems:

..................................US$m
........Borrowings...Interest cost....Cash...Net Borrowings
FY11.......120.................5.............69..........51
FY12.......203.................6............165.........38
FY13.......297................12...........229.........68

Early loan drawdown resulted in high interest cost -- the US$12m in FY13 was a big dent on the US$60m pre-tax profit.

Asset acquisition (mainly for the boxes to carry rubber) had been slow until FY13:

FY11.......US$19m
FY12.......US$27m
FY13......US$111m

Has Goodpack been over-cautious, securing the money early in anticipation of future heavy demands for its boxes, or anticipating rising loan rates?

Goodpack has a niche in the transportation of rubber, in particular the synthetic. Research by DBS indicates more boxes being required for rising demands by the synthetic rubber factories in the Jurong Island and from Russia.

The high Ebitda margin of 46.7% in FY13 is testament to the lucrativeness.

[portuser]

30% of Goodpack(Korea) used to be owned by external parties.
In June 2013, Goodpack acquired 15% of Goodpack(Korea) for US$2m. Today, Goodpack announced acquisition of the remaining 15%, for US$2 m again, making Goodpack(Korea) wholly-owned.
The profits attributed to the external parties when they owned 30% of Goodpack(Korea) were quite high --- US$2.02m in FY2012 and US$1.05m in FY2011.
The US$4m that Goodpack spent on acquiring the 30% stake is therefore very modest.