Australian (ASX) Stock Market Forum

GTP - Great Southern Plantations

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Ken said:
this is a stock i am looking at getting also within the next few days.

how many units are you guys holding..
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Ken I hold quite a few, its good imo.... .and again up over 1% already today. I think this gradual trend increase will continue now until early next year based on past history trend and the returns on their investments next year. Im happy with that, 1-1.5% a day is great - remember the race between the turtle and the hare.

I think this is undervalued and will perform so its a good buy (although I cant recommend you buy it Ken, if I could I would).
 
Here's a bit more food for thought guys.
With pressure seeming to mount daily on the government over its incompetence on the global warming issue this stock would seem to be in a prime position to take advantage of a carbon trading sceme.
I don't know when such a sceme will be implemented but i can asure you its a matter of when not if (The next election if labour win).

It is purely for this reason why i like this stock. Definitely will be keeping a close eye on future developments.
 
Sorry, but it cannot as carbon sequestered during tree growth is considered to be reversed when the tree is chopped down, i.e. CO2 neutral and therefore no benefit.
Cheers!
 
Nicks said:
Ken I hold quite a few, its good imo.... .and again up over 1% already today. I think this gradual trend increase will continue now until early next year based on past history trend and the returns on their investments next year. Im happy with that, 1-1.5% a day is great - remember the race between the turtle and the hare.

I think this is undervalued and will perform so its a good buy (although I cant recommend you buy it Ken, if I could I would).
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I am now convinced this is on a steady uptrend, as again it is up over 1%. Can any one check out some technical analysis on this?
 
Sainter said:
Sorry, but it cannot as carbon sequestered during tree growth is considered to be reversed when the tree is chopped down, i.e. CO2 neutral and therefore no benefit.
Cheers!
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Not if it goes into buildings or funiture. The carbon will still remain locked up in the wood.
 
Nicks said:
I am now convinced this is on a steady uptrend, as again it is up over 1%. Can any one check out some technical analysis on this?
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It my be in an uptrend in the short term, but on the monthy chart it needs to break through the channel that its starting to decline in. Also, i would want to see it trade through the 200 ma before being optomistic on a further push upward. Only my opinion, and i would love to hear some others.....BARNEY!?
 

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Its pushing higher again, every day.

Has anyone got any ideas why this share is making 1%+ gains per day? is it just cyclic like this every year, ie it will go up to $4 and then retreat?

Its got a great pe and dividend. Im really happy with this stock.
 
A lot of the big players are getting back on board with GTP, incl CBA two days ago. This is a good sign, and confirms the inferred value, obviously they feel there is inherent value in GTP and good prognosis for growth potential.
 
I've said previously that I believe GTP will again reach $4 then drop but the drop was expected due to tax treatment uncertainties about thier products. If the govt/ATO finally make a concrete decision on this then maybe there is no reason for the tax time downturn, the low PE ratio/good value of GTP will then make GTP a target of the big investors on a more permanent basis. Is $8 - $12 a possibility?
 
billhill said:
Not if it goes into buildings or funiture. The carbon will still remain locked up in the wood.
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I agree it does remain locked up in the wood, but only for a finite time (even if that is 200+ years). Legislatively you cannot put a time on how long it will exist as furniture (notwithstanding less than 40% of a hardwood tree goes as sawlogs and furthermore that GTP trees are earmarked for chips/pulp), so the easiest thing to do is to consider it as being reversed at the time it is chopped down. I know this as I asked ITC why they didn't enter into the CO2 game with their trees (inc. hardwoods), and that's the reason I got. And to me it makes sense, as a chopped tree is a dead tree, so inevitably will decompose with time.
Cheers!
 
Howdy Bongo,
Thanks for the link. NAFI clearly has a barrow to push, and has been written from that angle. Indeed, use of timber rather than concrete DOES give a net benefit due to the CO2 cost of producing concrete, steel etc. The plantations may currently be net removers of CO2, butI would argue that is only due to these plantations being in a 'growth phase', if you pardon the pun. Looking forward, once plantation equilibrium is reached (x Ha planted and x Ha cut down), the net CO2 benefit will be minimal, assuming the approach I mentioned above.
As you say, the legislation is the key.
Cheers!
 
and an extra bit to follow that above:

Keeping them in the ground is a once-only sale for GTP and the like, and the landowners may not be too happy!
As you say, the legislation is the key, and as I see it, they cannot avoid the inevitability of gradual CO2 liberation from harvested trees.
Cheers!
 
I don't know about a one-off sale Sainter. If the polluting companies would be charged a yearly tax, you'd think the 'cleaning up' companies would get paid a yearly offset ? :confused:

And a crop just planted would be worth less than a full grown crop of ten years as there would be a difference in the amount of Carbon they would take out.

And you wouldn't think the carbon would be totally reversed as the whole idea of the industry is to produce a carbon product. If you take that line (and you may be right in that the government might) then when all of the other agricultural crops are harvested, since they are mostly carbon, they'd have to pay a tax too ? :confused:

Don't know when they decompose how much goes back into the ground and how much escapes into the air.

If the company you spoke to takes a different line then i could well be wrong. (Better not invest then :D ).

Very confusing though. No wonder the government doesn't want to go near it. :eek:
 
good move friday------appears to have broken short term downtrend with a move above $2.90...................go gtp looks ready to run?
 
Yes Michael, got in below $2.40.........was a no brainer at that price.

I do believe it is worth more than the current market price so lts see where the market values it this time....hoping for a favourable tax review from government which should give it more certainty this time and hence a higher P/E ratio..............
 
Certainly helps the portfolio when a stock will reliably add 1-2% per day consistently. Should gradually do this all the way up to $4+. Im happy.

Re the no brainer comment - im with you there. I think its still a no brainer though, at the returns it gives, p/e, dividends and projects coming online next year.
 

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