# SRS - Spicers Limited



## jyse (19 July 2005)

For my first post, I want to discuss about Paperlinx. It's been mentioned in a couple of posts before when it took a tumble in Apr / May due to profit downgrades (strong aussie dollar hurting US pricing, slowing demand, etc.,) but now seems to have bottomed out and making good grounds. 

Anyone have any info on this?

hmm... how do you post an image??? 

Got it - it auto attaches


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## RichKid (19 July 2005)

*Re: PPX - Paperlinx on the way back up*



			
				jyse said:
			
		

> For my first post, I want to discuss about Paperlinx. It's been mentioned in a couple of posts before when it took a tumble in Apr / May due to profit downgrades (strong aussie dollar hurting US pricing, slowing demand, etc.,) but now seems to have bottomed out and making good grounds.




Hi jyse,
Welcome to the forums, glad you managed to get the chart attached. There's an FAQ in the toolbar too.
From a quick glance at the line chart you posted it looks like an inverse head and shoulders reversal. Also a possible 123 set-up, still no trigger but need a better graph. If the AUD has a strong effect on the sp then watch out as the AUD maybe about to break upwards soon.

Just my initial view.


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## jyse (20 July 2005)

*Re: PPX - Paperlinx on the way back up*

I'm quite a novice at this but I figured they own Reflex papers which is synonymous for copy paper here AND at the current price, they forecast dividends put them at almost 9% so it seems a safe bet for me. Better than my ING account


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## BXP (20 July 2005)

*Re: PPX - Paperlinx on the way back up*

I think also Europe is important. The economies are slowing and PPX gets a lot of revenue from there. They are coming back. Also FPA is one that is also doing well after a large fall.


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## RichKid (2 September 2005)

*Re: PPX - Paperlinx on the way back up*

This one seems to be falling back again- wonder if it's the AUD? Does it have such a big effect on this stock? Don't think so, has kinda gone sideways abit recently. Anyone got an updates on the FA?


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## GreatPig (15 December 2005)

*Re: PPX - Paperlinx on the way back up*

Today PPX broke above the highs of July, creating a small gap day.

Could this be the start of another run up, or are we perhaps about to see a small island reversal?

Hopefully the former, since I hold 

Cheers,
GP


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## RichKid (15 December 2005)

*Re: PPX - Paperlinx on the way back up*



			
				GreatPig said:
			
		

> Today PPX broke above the highs of July, creating a small gap day.
> 
> Could this be the start of another run up, or are we perhaps about to see a small island reversal?
> 
> ...




Volume would be nice but it looks green lights all the way, might it re-test the resistance line?


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## BuyandHold (4 January 2006)

*Re: PPX - Paperlinx on the way back up*

I think PPX was way overdone when it got hammered last year. I think the biggest concern at the time was management capability not the profit downgrade (which though unexpected was relatively small). There was a view at the time that management didn't understand why they were behind plan and many questioned why PPX's profit estimates had been based on an USD/AUD of 70c. PPX still generates a good cashflow and is the worlds largest fine paper merchant, I like PPX long-term. (note: I hold PPX stock).


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## NettAssets (22 August 2006)

*Re: PPX - Paperlinx Limited*

Anyone have any feelings on this

up 8% (25c) on a reasonable annual return and div announcement of 4.5c
I've been trading their swings but missed this one
could it be possibly be tied up in the Amcor rumblings?
Looks like BPC is out of that picture 
John


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## UMike (31 January 2007)

*Re: PPX - Paperlinx Limited*

I've just bought into PPX. I feel lucky to have got it at $3.51

I feel it'll be good Medium-Long term.


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## JBMMMMMMMMMM (23 February 2007)

*Re: PPX - Paperlinx Limited*

your be happy now its 4.40 in under a month from 3.50

-What I'd love to know is Why has is run so hard ,I've only looked over PPX very briefly so might be completely wrong but it's looking like a good short.


-the 300million offer to holders to buy some of PPX's dept with the chance to be paid in more PPX shares(diluting  SH's)
-P/e- 30+  low divie 2%
-Higher AUD/USD looks likely - Oil price 60+ Interest rates world wide look to increase.
-Manufacturing isn't China & vietnam india undercutting the world  in this sector.
-ASX200 over 6000 alot of anaylst talking up a large downward correction soon

-Theres my negatives

-Some postives -PPX SPS help retire dept ,Increasing revenue,solid Asset backing ,leading International paper merchant


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## UMike (23 February 2007)

*Re: PPX - Paperlinx Limited*

Being an absolute week of getting nothing right I sold it for $3.88.

AND BOUGHT FGL and ABS.  

Heres to a better week next week. :drink:


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## barney (24 February 2007)

*Re: PPX - Paperlinx Limited*



			
				JBMMMMMMMMMM said:
			
		

> your be happy now its 4.40 in under a month from 3.50
> 
> -What I'd love to know is Why has is run so hard ,I've only looked over PPX very briefly so might be completely wrong but it's looking like a good short.
> 
> ...





I agree JB (M times 10) .................. I had it short when it looked like it had double topped at $4 .................. , had to do some quick sidestepping when the fundamentals clashed with the technicals     ..........   Cheers.


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## JBMMMMMMMMMM (26 February 2007)

*Re: PPX - Paperlinx Limited*

Glad I shorted on friday looks good to retreat to $4


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## JBMMMMMMMMMM (27 February 2007)

*Re: PPX - Paperlinx Limited*

These 429 buyers must know something I don't 
 AUD up against USD
 OIL up
Major sellers at 430

Come on buyers what makes you think PPX  P/e -31 is a buy  

 might take my short to 50,000


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## UMike (19 November 2007)

*Re: PPX - Paperlinx Limited*

At $2.50 it'd be getting a bit tasty.

I'll look at getting a few more if it gets to around $2.40


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## So_Cynical (29 June 2008)

*Re: PPX - Paperlinx Limited*

This is the first time ive looked at *PPX* and other than the SP it looks like a 
great business...merchants and manufacturers of fine paper.

Company Summary
$5.84 all time high in late 03
$3.80 52 week high 
$1.67 low last week
Market Cap: 829,162,667
Issued Shares: 453,094,354

Sure the high dollar is an issue but the fact is that Australia is a great place 
to make paper, as quality paper requires the long fibers found in Australian 
eucalyptus trees....there's alot of plantations coming online now and in the 
near future, so supply is a total non issue and mechanized harvesting will 
help reduce costs in the long term.

Trading at near all time lows at the moment...all time chart below.

any fresh opinions?


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## UMike (29 June 2008)

*Re: PPX - Paperlinx Limited*

The new facility is nearing completion and although over budget there has been an increase in the operation saving being budgeted.


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## prawn_86 (17 February 2009)

*Re: PPX - Paperlinx Limited*

Up over 100% so far 

News that it is selling some assetts or something. Never followed the stock before but thought it at least deserved a mention...


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## YELNATS (17 February 2009)

*Re: PPX - Paperlinx Limited*



prawn_86 said:


> Up over 100% so far
> 
> News that it is selling some assetts or something. Never followed the stock before but thought it at least deserved a mention...





Held this stock mainly for dividends for a few months a couple of years ago and got out with a small loss. Not really in a high-tech/high-growth industry, so I couldn't see a brilliant future for this one.


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## UMike (17 February 2009)

*Re: PPX - Paperlinx Limited*



prawn_86 said:


> Up over 100% so far
> 
> News that it is selling some assetts or something. Never followed the stock before but thought it at least deserved a mention...



Well the market had a genuine fear that this company would fall over.

Seems that it will survive but it'll take a long time to be confident in this conpany again.


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## Tysonboss1 (18 February 2009)

*Re: PPX - Paperlinx Limited*



UMike said:


> Well the market had a genuine fear that this company would fall over.
> 
> Seems that it will survive but it'll take a long time to be confident in this conpany again.




I think that PPX will be generating pretty strong sales while the Aussie dollar is low, Alot of it's traditionally cheaper competitor's who import paper have made 5 price increases which now makes PPX aussie made products better priced.


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## 4fundamentals (27 July 2009)

*PPX - Paperlinx Limited*

Hi Guys,

I am still new to investing.  I am really looking into PPX. 

I see sooo much value just from a fundamental perspective.  2008 Annual Figures suggest a NTA per share of $2.72.  Looking at Aegis and MSSB (morgan stanely smith barney views),  2009F $2.65 for MSSB and $1.09 for Aegis.

I'm looking at an entry at about $0.41?

I was hoping for any technical analysis of this stock?

Thanks

Boh


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## boofhead (27 July 2009)

*Re: PPX - Paperlinx Limited*

I suggest researching the market and the various entities PPX own - including some making losses. For example paper making. While PPX sold (or selling) Australian Paper to a Japenese company they have retained the less profitable (a recent review said it is making an unacceptable loss) Tas Paper. Many people use imported papers. Last financial year they only paid 1 dividend instead of their normal 2. Have you looked at their financial reports?


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## $20shoes (6 February 2010)

*Re: PPX - Paperlinx Limited*

Bumping this thread. Perhaps one to watch....
Nice base. Has held well during the broader market weakness of late ( could argue that it hasn't done much prior  )and will be  interesting to see how the high volume of Friday resolves itself.  Certainly 60c looks like a buying area with volume support. For the watchlist...


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## Huskar (13 June 2011)

*Re: PPX - Paperlinx Limited*

No comments on PPX for a fair while. Does anyone have any opinion on if there is value left in this market dog? Is it a "cigar butt" with one last puff left or a falling knife going all the way to the bottom?

Market cap: ~$95m
2010 Revenue: $5bn
2010 NPAT: $37.2m loss
Shares: 603.6m
Net assets: $923.9m
Expected FY11 loss of $23m


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## nulla nulla (13 June 2011)

*Re: PPX - Paperlinx Limited*

PPX has been on my watch list for a couple of years now. However, they have been in trouble for a most of that time with a faling share price that shows little sign of bouncing. ppx was a producer/distributor with established brands like "reflex" selling into Europe, Australia and the U.S. From memory they sold off their plants as being too expensive to modernise and upgrade to stay competitive. As a result they are now a distributor.

Their NTA is higher than their share price but I don't know what their assets are after they sold of the manufactoring plants. They have significant borrowing levels that need to be refinance from time to time, also the rising dollar doesn't help them compete as a wholesaler/distributor in the global market. They have stated that they have a policy of not getting into price wars for fear of over diluting their revenue stream. However they recently downgraded their forcasts and i don't think they have issued a dividend for some time.

They could become a take over target for someone wanting their established brand lines but paper is relatively cheap now and their is a lot of competiton. Looking at it objectively, ppx looks like it is in wind down mode. The only beneficeries to the income stream being the management on salaries and the financiers. 

If I was a share holder I wouldn't like to see any payment of management bonus/incentives while they are unprofitable and the share price so badly depressed.


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## Huskar (13 June 2011)

*Re: PPX - Paperlinx Limited*

Thanks for the reply Nulla Nulla.

I tend to agree but can't help feeling there is some value here. There was an informative article recently by Ian McIlwraith (http://www.theage.com.au/business/nothing-going-right-for-paperlinx-20110601-1fgo2.html) noting that PPX is exposed to the European countries that are currently facing significant economic headwinds (ie everywhere other than Germany and France). 

And looking closer at their NTA, a significant proportion is currently tied up in inventories and receivables which is always liable to significant writedowns...

I did a Warren Buffet "break-up" analysis and came up with an adjusted per share book value of ~$420m or 70c per share, but this is very sensitive to changes in valuation of inventories. If they are valued at $0 then that pretty much leaves nothing .

Ah well the search for value continues..


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## nulla nulla (1 July 2011)

*Re: PPX - Paperlinx Limited*

Bugger, I was waiting to see if it hit $0.10 then I was going to throw some super funds at it for a small parcel and hold for any prospects of a recovery against NTA. Talk about timing. I picked PPX for the stock tipping competition but it took off two days before month end. Instead of $0.105 - $0.11 the 30 June price jumped to $0.16, without me.

Then it went into a trading halt pending a "restructure announcement". Odd how the share price jumps immediately before the announcement. Insider trading any-one? Wonder if ASIC will even bother to look into it? 




Had to cancel and repost as I forgot the chart.


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## Garpal Gumnut (1 July 2011)

*Re: PPX - Paperlinx Limited*



nulla nulla said:


> Bugger, I was waiting to see if it hit $0.10 then I was going to throw some super funds at it for a small parcel and hold for any prospects of a recovery against NTA. Talk about timing. I picked PPX for the stock tipping competition but it took off two days before month end. Instead of $0.105 - $0.11 the 30 June price jumped to $0.16, without me.
> 
> Then it went into a trading halt pending a "restructure announcement". Odd how the share price jumps immediately before the announcement. Insider trading any-one? Wonder if ASIC will even bother to look into it?
> 
> ...




Somebody knew something at 17 and 15c., looking at the chart.

ASIC are a hopeless bunch of muppets.

gg


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## Castle of Sell (22 February 2015)

*Re: PPX - Paperlinx Limited*

Anyone have any thoughts of a speculative grab at paperlinx @ 2c?


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## piggybank (23 February 2015)

*Re: PPX - Paperlinx Limited*



Castle of Sell said:


> Anyone have any thoughts of a speculative grab at paperlinx @ 2c?




I had this stock in the early noughts (it paid a pretty good dividend in those days to) but it appeared to just be going sideways when I decided to sell it in the middle of '04. Today it closed at 0.018c. Up until last Tuesday the bollinger bands had tightened over the past couple of months suggesting their would be an imminent move up or more likely down which actually happened. This action also happened on the day after the announcement to the market that the employment contract of the CEO & MD, Mr Andrew Price that was due to expire in April 2015 has been terminated with immediate effect.

If you want to read the market release in full, then click on the link provided.

What thoughts do you have of the stock presently Castle of Sell?

http://www.stocknessmonster.com/news-item?S=PPX&E=ASX&N=419188


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## Castle of Sell (24 February 2015)

*Re: PPX - Paperlinx Limited*



piggybank said:


> I had this stock in the early noughts (it paid a pretty good dividend in those days to) but it appeared to just be going sideways when I decided to sell it in the middle of '04. Today it closed at 0.018c. Up until last Tuesday the bollinger bands had tightened over the past couple of months suggesting their would be an imminent move up or more likely down which actually happened. This action also happened on the day after the announcement to the market that the employment contract of the CEO & MD, Mr Andrew Price that was due to expire in April 2015 has been terminated with immediate effect.
> 
> If you want to read the market release in full, then click on the link provided.
> 
> ...




Cheers, Piggybank.

 I don't think there's any value in PPX, but could be in PXUPA if they can get sell their European assets for something. By the looks of their CEO appointment they will be looking to sell as much of their overseas operations as possible.

The hybrid PXUPA could be of value given it ranks ahead of the equity (PPX) in the capital structure.  It's a $275m issue that trades at 7.50c in the dollar (down from 11c the other day)

If the new CEO can manage to grow operation beyond the traditional print, then their maybe some value in the future. It closed at 17c today.. so tempting.


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## Castle of Sell (22 April 2015)

*Re: PPX - Paperlinx Limited*

It appears the market is reacting positively to the UK and parts of the European arm going into administration.

It seems there is no recourse on the profitable Australian business.

I wonder where this stock lands in the coming months?


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## System (17 November 2015)

On November 17th, 2015, PaperlinX Limited (PPX) changed its name and ASX code to Spicers Limited (SRS).


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## UMike (19 November 2015)

Let hope the performance changes.


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## greggles (16 May 2018)

UMike said:


> Let hope the performance changes.




Spicers Limited has been seeing some above average volume over the couple of days and today there's been a nice move north after 12 months of mostly trading sideways. It's up around 9% so far today.

Something up with SRS? No announcements from the company this month.


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## McLovin (16 May 2018)

This is what's pumping it up I'd guess.



> One of the country's best known brands and some stars of the global tech world were named as top stock picks on Tuesday, as some of the country's top investors came together at the Future Generation Investment Forum in Sydney.
> 
> ...
> 
> ...


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## greggles (16 May 2018)

McLovin said:


> This is what's pumping it up I'd guess.



Where did you find that McLovin?


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## McLovin (16 May 2018)

greggles said:


> Where did you find that McLovin?




Sorry, forgot to put the link in...

http://www.afr.com/markets/equity-m...s-name-their-favourite-stocks-20180515-h103pt


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## greggles (16 May 2018)

McLovin said:


> Sorry, forgot to put the link in...
> 
> http://www.afr.com/markets/equity-m...s-name-their-favourite-stocks-20180515-h103pt



Thanks. I suppose it could be undervalued, but it doesn't appear to be a compelling growth proposition. They seem to be focused on cutting costs and streamlining their operations rather than growing revenue.


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## Rainman (30 May 2018)

greggles said:


> Thanks. I suppose it could be undervalued, but it doesn't appear to be a compelling growth proposition.




Who cares about growth?  Growth is overrated and most investors usually overpay for it.

SRS is my largest position and it has been since 0.026.  There is a tonne of value here: the cash, the real estate.  A return of capital or a sale of the real estate could easily cause this stock to pop.  

SRS is the very definition of a low-risk, high-return bet at current levels.


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## greggles (30 May 2018)

Rainman said:


> Who cares about growth?  Growth is overrated and most investors usually overpay for it.




Well, revenue growth is usually the driver of share price growth. Not always, but usually.



Rainman said:


> SRS is my largest position and it has been since 0.026.  There is a tonne of value here: the cash, the real estate.  A return of capital or a sale of the real estate could easily cause this stock to pop.
> 
> SRS is the very definition of a low-risk, high-return bet at current levels.




I hope you do well out of it. If your position is that SRS is fundamentally undervalued then the market may well come around to your way of thinking eventually. Or not. As you suggest, it may well take the sale of one or more of SRS's assets to realise that value.


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## galumay (30 May 2018)

Rainman said:


> SRS is the very definition of a low-risk, high-return bet at current levels.




That seems a rather optimistic analysis at face value! Growth might be overrated, but negative growth can only last a finite time. Revenue has been falling for years, cash flow and earnings are lumpy and dont really look to be going anywhere. Margins are small, ratios like ROC & ROE low. Cash levels are steadily falling also. 

I admit I only gave the financials a brief look over, but it didnt make me want to dig any deeper. Not sure of the background but the shares outstanding more than tripled to over 1b shares in 2017, was there a split or a massive share issue? 

Maybe I am missing the attraction beccause I didnt dig deep enough?


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## Rainman (30 May 2018)

galumay said:


> ... Not sure of the background but the shares outstanding more than tripled to over 1b shares in 2017, was there a split or a massive share issue?




SRS issued shares to purchase units in the PaperlinX SPS Trust that it didn't already own.  This trust held the Paperlinx hybrids that had been issued before Paperlinx went under.  The purchase was necessary for SRS to be able to operate without the overhang on its capital structure of these units.

I grant you that SRS is a cigar butt - a Graham-and-Dodd kind of stock.  But it has a decent value-spread over the current market price.  On a net current asset value basis, it is worth around 0.045 versus a current market price of 0.036.  Add to that the real estate in Singapore and Tasmania and you have a security backed up by relatively easy-to-value assets.

If it drops to 0.03 or lower, I will load up again.


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## So_Cynical (30 May 2018)

Paperlinx - sends shudders down my spine.


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## Triathlete (31 May 2018)

Lincoln Stock doctor Strategic Comment *Last update:* 02 March 18


SRS exhibits unacceptable levels of financial risk due to a below benchmark Financial Health score. Investors need to be aware such companies pose risks and warrant a speculative investment only. Any prospective investment should be managed with tight stop losses implemented.


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## Rainman (31 May 2018)

Triathlete said:


> Lincoln Stock doctor Strategic Comment *Last update:* 02 March 18...




So that passes for your analysis on an individual stock name - plug a ticker code into a computer program and repeat whatever it spits out?

Very diligent.

SRS is up nearly 20% since mid-March.  Enough said.


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## McLovin (31 May 2018)

Rainman said:


> Who cares about growth?  Growth is overrated and most investors usually overpay for it.
> 
> SRS is my largest position and it has been since 0.026.  There is a tonne of value here: the cash, the real estate.  A return of capital or a sale of the real estate could easily cause this stock to pop.




And what's the catalyst for that value to be realised? The company operates on razor thin margins (when it makes money) how realistic is a sale and leaseback type arrangement?


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## Rainman (31 May 2018)

McLovin said:


> And what's the catalyst for that value to be realised? The company operates on razor thin margins (when it makes money) how realistic is a sale and leaseback type arrangement?




SRS is a cigar butt trading at a 30% discount to net current asset value.  I am not arguing that it's a great business.  

I don't know what the catalyst is.  In my experience, if the value is there, it will get realised in one form or another.

Also, there's an activist shop, Sandon Capital, in this name now.  It might stir things up.  

If management starts making dumb acquisitions or starts dissipating the asset value, then I will reassess.


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## Triathlete (1 June 2018)

Rainman said:


> So that passes for your analysis on an individual stock name - plug a ticker code into a computer program and repeat whatever it spits out?
> 
> Very diligent.
> 
> SRS is up nearly 20% since mid-March.  Enough said.



Of course not.....As I mentioned a number of times my main game is TA.
I do use them for the FA though it is much easier for me to make my decision if the Technicals line up as well.

Just that if I was to take a position it would not be a large one and more of a spec size position that is all.

Happy for you to have made money on it that is your good...


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## Triathlete (1 June 2018)

Rainman said:


> SRS is up nearly 20% since mid-March



Happy that your position is up 20% although you have not made anything until you close out your position you know that and I know that....you can do your cartwheels and tell everyone how right you were then......

A lot of people were high fiving when they rode Slatter and Gordan on the way up and were still holding it on the way down....not saying you would have....

Based on your current FA"VALUE" assessment of this company at what point would you consider that it would be overvalued on their current balance sheet another 30% is fair value as above??? 

I just might take a position....


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## McLovin (1 June 2018)

Rainman said:


> SRS is a cigar butt trading at a 30% discount to net current asset value.  I am not arguing that it's a great business.
> 
> I don't know what the catalyst is.  In my experience, if the value is there, it will get realised in one form or another.
> 
> ...




IMO, the fact it's not a great business plays into how events may unfold. My first thoughts from looking at the last few years of accounts is (a) the issue of a sale and lease-back; can the business afford to rent? (b) how willing would management be, in a business with such awful economics, to give up the cash they're hoarding?

Re Sandon, what's their shareholding? I can't see a substantial shareholder notice from them and in the last AR there are 4 substantial shareholders listed and they're not one of them. If they're serious activists then they need a seat at the board, not just talking out their arses at investor conferences. On the other hand Allen Gray are also activist and they sold out last year. Maybe the too hard basket for them?

In the AFR article I linked to from Sandon they mentioned the land in Tasmania. Is this it?



> The old Wesley Vale paper mill is *still for sale seven years since it closed* and 250 workers lost jobs at the site.
> 
> That’s despite several prospective buyers showing an interest over the years.
> 
> ...




https://www.theadvocate.com.au/story/5119726/former-wesley-vale-paper-mill-still-for-sale/

What's a tonne of gold on Pluto worth?

IMHO, this is a long way from being easy runs on the board.


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## Rainman (1 June 2018)

McLovin said:


> IMO, the fact it's not a great business plays into how events may unfold...".




An investment in a net-net like SRS is not a bet on a turnaround.  It is not even a bet on a modest improvement.  It is a bet on a reversion to the mean.

What's the mean in this case?  Net current asset value, i.e. net assets less all liabilities and minority interests, is around 0.05 cents.  In March of this year, SRS was selling for a 50% discount to net current asset value.

The Australian market is pretty efficient.  Companies selling at a 50% discount to net current asset value, irrespective of their economics, are rare in my experience.  The Australian market like the U.S. market has a habit of narrowing such wide spreads.  It may not narrow the spread in SRS all the way up to 0.05 cents.  But if it narrows it up to 0.04 cents, I will start selling.  I will be out at 0.045 cents.



McLovin said:


> Re Sandon, what's their shareholding?...




Yes, agree.  There's no evidence they have a stake that's going to allow them to do much.  On the other hand, there are two directors from Coastal Investment Management on the board.  Coastal has just under a 14.5% shareholding, so I expect that it will want to generate value so as to be able to sell down its position in the not too distant future.  Perhaps more importantly, Coastal will be against any value-destroying moves.



McLovin said:


> In the AFR article I linked to from Sandon they mentioned the land in Tasmania. Is this it?




Nice find.  But let's say the land is worth only $5 million.  SRS is worth 0.05 cents a share on a net current asset value basis: you're getting the land and all the other non-current assets for free.


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## Rainman (1 June 2018)

Triathlete said:


> ... I just might take a position....




I wouldn't take a position in SRS at this level.  The discount from net current asset value has narrowed since March.  The risk/reward is not as attractive as it was in March.


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## Rainman (25 August 2018)

SRS reported a decent FY 2018 given where it was trading when I first mentioned it.

It was trading at 0.036 on 1 June 2018.  It's trading today at 0.044.  That's a more than 20% gain in just under 3 months - 80% on an annualised basis. 

Decent net-net stocks appear fairly infrequently on the ASX but when they do they're usually worth taking a closer look at because they tend to offer markrt-beating returns.


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## Rainman (12 September 2018)

McLovin said:


> ... IMHO, this is a long way from being easy runs on the board.




In April this year, one could have purchased this name for 0.025.  At that price, SRS was trading at a massive 50% discount to net current asset value.  The land that it owned and all the other non-current assets one got for free.

Today SRS moved up to 0.05 cents a share and I sold out the last of my position at 0.049.  There may still be money to be made on this name.  But I feel the easy money has been made.

It may have been the case, McLovin, that this opportunity was, as you said in June, "_a long way from being easy runs on the board_".

But I wonder whether that is ever the right approach to take to a deep value opportunity such as SRS offered in April.

Isn't the more appropriate question this: Weighing risk and reward, what are the probabilities that I make money - some money - on this name versus the probabilities that I suffer a permanent impairment of capital?

Remember, even at 0.05 cents a share, SRS is just now trading at around net current asset value.  Meanwhile, from 0.025 to today's close of 0.049 it has delivered an almost 100% return in less than 6 months.


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## greggles (18 January 2019)

Spicers Limited announced yesterday that it is to be taken over by Kokusai Pulp & Paper Co., Ltd. Existing shareholders are to be paid 7c for each ordinary SRS share held, valuing the company at A$147.6 million.

Given that the previous close for SRS was 5.3c and the last time it reached 7c was back in October 2014 (reached only briefly), this looks like a reasonable result for shareholders. Although I'm sure some may disagree.


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## System (18 July 2019)

On July 17th, 2019, Spicers Limited (SRS) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between SRS and its shareholders in connection with the acquisition of all the issued capital in SRS by Kokusai Pulp & Paper Co Ltd.


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