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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?
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Any idea why goodpack slumped today? slumped with unusually high volume doesn't seem to be good...highest volume in 2 years.....
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26-04-2013, 06:03 PM
(This post was last modified: 26-04-2013, 06:03 PM by l0nEr.)
okay.. now we know who is selling.... but only on that one day...hmm
Capital Group sold 0.4% or 2,246 lots.
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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.
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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.