MWY - Midway Limited

[System]

Midway Limited is a leading company in the Australian forestry sector, primarily involved in the production and export of high quality wood chip fibre to producers of pulp, paper and associated products in China and Japan.

Founded in 1980, Midway wholly owns strategic processing and export facilities in Geelong and is the majority stakeholder in strategic processing and export facilities in Portland and Brisbane.

It is anticipated that MWY will list on the ASX during December 2016.

https://www.morgans.com.au/Corporate-Deals/Midway-Limited-IPO

 

[peter2]

Since listing price has traded sideways in a tight range. My interest was peaked after price closed above 2.60 recently. This was a yearly and all time high.

I'm surprised that this company hasn't been mentioned in ASF since listing. Midway seems certainly worth the time to research it although price has already started going higher.

 

[aus_trader]

I'm surprised that this company hasn't been mentioned in ASF since listing. Midway seems certainly worth the time to research it although price has already started going higher.

Thanks for bringing it to the attention. Looks to be a good company, I'll keep an eye out for it and do a bit of research on it...

 

[rcm617]

Has drifted back down after recent bounce due to announcement of a 11% increase in price for Chinese woodchip exports. Has also been adding a few growth opportunities in WA and Tiwi Islands. Pretty cheap for the potential and should slowly increase in price especially with the tight woodchip market mentioned in the latest announcement.

 

[Ann]

MWY is inching up slowly, the Twiggs Money Flow weekly is showing a gradual rise, the Positive and Negative Volume Indexes are both bullish.

 

[Miner]

any one is following this sinking stock ? Do not hold. Just came to my attention.
Thanks

 

[rcm617]

An oversupply of pulp from Brazil will result in a very weak first half. They are hoping for improvements later in the year. If they do get back to previous levels might be worthwhile entering again at some stage with a dividend yield at this price of nearly 10% with franking on top.

 

[Wyatt]

Owned it a bit over a year ago and from memory didn't make or lose much.
Have thought about the divvy opportunity with this stock, but fortunately did not rebuy. It is not a stock I personally should be buying as momentum is rapidly downwards.

Good example of an exit after big drop on 28/8/19, saving one from ongoing larger losses and ongoing pain and misery, unless you can look past the short term, which some here may be able to do.

The news was great mid year with high demand, rising prices and dropping $AUS. But that turned around quick with the full year result highlighting some headwinds and the recent announcement refers to oversupply and reluctant buyers, which should resolve itself soon, apparently.

Current price close to all time low from listing in late '16, has a history of consistent divvy payment of .18/yr, so 9%FF from here for the value buyer, maybe.

 

[So_Cynical]

Pulp market has collapsed but that of course is not permanent, the new pellet market is interesting and has a big future as the pellets are
renewable, Midway presents as a classic contrarian stock opportunity, super stable div payout with 6 consecutive 9c fully franked dividends.
~

 

[galumay]

Yes its an interesting business, an unloved sector, a boring business, but it has some strong metrics. I have it on a watch list and will do some more research.

 

[rcm617]

ASX announcement this morning that they have secured a price of $US175 per tonne for woodchips for a major Chinese buyer. Considering the ructions in the pulp prices that is a good outcome with that price only being $7.00 below this year and with exchange rate differences price will be fairly close to this year.
Considering they have dropped from a peak of $4.00 in march to below $2.00 this year seem to be cheap at this price.

 

[rcm617]

My pick this month for the competition. Came out with a reassuring report last week that China demand is returning to normal and they have reduced debt back to normal levels.
With the amount of toilet paper consumed because of CV19, one would think pulp prices would go through the roof

 

[The Triangle]

Operating Cashflow 2017 to 2019:
16.2, 13.1, 5.6
Dividend 2017 to 2019:
11.2 13.5 14.6
Payout of Operating Cashflow 2017 to 2019:
69% 103% 261%
Profits have gone from 20 -> 25 -> 31 million.

I see red flags when operating cashflow is divergent from profits and dividends - it is not sustainable and 3 years is usually a good indicator that it's not cyclical but a LT trend. I also see an earnings downgrade came out - 10 to 14m EBITDA! Ouch. When has forrestry been a good investment?

 

[peter2]

Have we seen the bottom in the pulp market?

MWY price seems to be coming off a bottom. It's not a traders stock.

 

[Dona Ferentes]

Midway caught the eye of some investor that mentioned it as a tip fave .
.
$55 million tiddler Midway ... is one of Australia’s largest wood fibre processors and exporters. [He] points out the firm has net cash, asset sale proceeds and inventory totalling $70 million (well above its market cap) plus 19 hectares of land at Geelong Port that is in the books at $15 million, but probably worth much more.
....also there is Midway’s creation of an asset management business specialising in forests and voluntary carbon offsets. The unit already has a $200 million commitment from insurance giant Munich Re for land purchases and tree plantings which Midway will manage.
.

 

[Country Lad]

Has a lot going for it, except for the industry it is in. Not sexy, is never flavour of the month and people probably confuse it with all those plantation managers who go broke.

 

[Dona Ferentes]

Has a lot going for it, except for the industry it is in. Not sexy, is never flavour of the month and people probably confuse it with all those plantation managers who go broke.

yep, the managed investment schemes have left a bitter taste . .... as they say, 90 per cent of tax driven ideas give the other 10 per cent a bad reputation.

 

[Dona Ferentes]

* possibly 95 per cent

 

[Country Lad]

* possibly 95 per cent

* possibly probably 95 per cent

 

[finicky]

Wonder why profit crumbled onwards from and including FY20.
Put it on a list to ponder. Anyone holding as an investment?

Not Held