Australian (ASX) Stock Market Forum

PGH - Pact Group Holdings

Jump to new
One I looked at and gave it a miss, I tried to find a way to like it because @ROE had invested in the business and I always liked his style and analysis, but the debt just was a hurdle I couldn't get over.

Mind you, it was only a bit north of $4 when I decided not to buy in.

Maybe I should run my ruler over it again.

EDIT - Nup, I was right the first time!
 
Last edited:
Price has formed a base and is now starting to go higher.

The chart below is part of a research project and should not be considered a recommendation to buy this stock. If you want to read more about the project log in to read the P2 Weekly Portfolio thread.

Setup: Reversal, break-out of horizontal resistance Grade A
Buy limit: 3.70, iSL 3.3, initial target 5.00

pgh250119.PNG
 
peter2 said:
Price has formed a base and is now starting to go higher.

The chart below is part of a research project and should not be considered a recommendation to buy this stock. If you want to read more about the project log in to read the P2 Weekly Portfolio thread.

Setup: Reversal, break-out of horizontal resistance Grade A
Buy limit: 3.70, iSL 3.3, initial target 5.00

View attachment 91649
Click to expand...
Hello @peter2 and other followers
Do you know or guessed what happens to PGH today ? Yes, it has incurred heavy losses but that was announced late February. Ralph Zeminder also invested couple of millions recently.
But without any announcment the priced has dived down more than 10% and probably would be more by COB ??
upload_2019-3-21_10-29-44.png
 
Miner said:
Hello @peter2 and other followers
Do you know or guessed what happens to PGH today ? Yes, it has incurred heavy losses but that was announced late February. Ralph Zeminder also invested couple of millions recently.
But without any announcment the priced has dived down more than 10% and probably would be more by COB ??
View attachment 93147
Click to expand...
Unstoppable slide-home into plastic crate ??
upload_2019-3-21_10-57-50.png
 
Thanks @Miner but I closed my trade in PGH after the first disappointing news in Feb19. I've learned to take the early loss (-0.6R) and to not let it get bigger.

It's been a volatile market with hits all over the place. The increase in volatility indicates that we're at a top just now and I'm anticipating a market dip soon.

pgh2103.PNG
 
peter2 said:
Thanks @Miner but I closed my trade in PGH after the first disappointing news in Feb19. I've learned to take the early loss (-0.6R) and to not let it get bigger.

It's been a volatile market with hits all over the place. The increase in volatility indicates that we're at a top just now and I'm anticipating a market dip soon.

View attachment 93153
Click to expand...
Hi Pete
For the holders, your analysis however disappointing, could be right.
I just read on Herald Sun, that the major share holder has shelved some $65 M worth shares through UBS at $2.50. He must have his reasons for market to bring down the price further
Regards
 
Shares of Pact Group Holdings Ltd fall as much as 17.6% to A$2.290, biggest intraday pct drop in a year

Packaging product maker posts FY statutory net loss of A$289.6 mln ($196.78 mln) vs profit of A$74.5 mln a year earlier [nFWN25914G]

Company expects EBITDA (before significant items) in FY20 to modestly improve

Stock hits lowest since June 27

About 2.4 mln shares change hands vs 30-day average volume of over 980,000 shares

Stock biggest pct loser on S&P/ASX 200 index <.AXJO>
  • ** Shares have fallen 19.9% this year, as of last close vs 16.3% increase in Aussie benchmark index <.AXJO>
 
good to revisit this. Failed to BO and as @Movendi highlights above market does not like loss.

Support ?? well maybe $2.20 will hold

upload_2019-8-14_11-31-24.png
 
PGH closed at $2.92 on Friday, the day's high and the highest price since March 2019.

I don't hold this stock, just drawing it to the attention of those interested in it. :2twocents
 
Smurf1976 said:
PGH closed at $2.92 on Friday, the day's high and the highest price since March 2019.

I don't hold this stock, just drawing it to the attention of those interested in it. :2twocents
Click to expand...

Good reminder @Smurf1976 - PGH found some support in late September @ $2.19 and has a couple of higher Lows showing a nice trend up to today's price of $2.92.

Can it break $3 this time ?
 
Trav. said:
Can it break $3 this time ?
Click to expand...
Nope, failed to get past the $2.92 and all down hill from there.

Closed $2.61 (~10% down from high) on Friday and SP looking very sick. Only good for a short trade from here.
 
Pact Group Holdings Ltd (PGH) is a provider of specialty packaging solutions, servicing both consumer and industrial sectors. It is involved in manufacture and supply of rigid plastic and metal packaging, materials handling solutions, contract manufacturing services and recycling and sustainability services. The company has revenue segments in Australia, New Zealand and Asia
Click to expand...

record lows, since listing.
upload_2020-3-7_17-55-20.png


...which is a reflection of pressures in the industry. Which is a sector where things have got to change.

Pact was a participant in a recent National Plastics Summit in Canberra, at which the company
used [the occasion] to announce a $500m plan to invest in new and existing facilities for sustainable packaging, reuse and recycling. This builds on its earlier decision to partner with Cleanaway and brewing giant Asahi on a new recycling facility that will process almost a billion plastic bottles a year.
Click to expand...
However, so far plans such as those announce by Pact are few and far between. Pact’s executive general manager, Siobhan McCrory, [said] too many of the company’s peers have dragged their feet on real action. “We’ve seen a lot of talk; what we are really imploring of others now is to start to act." “We are finding that some of the brand owners are being quite slow to act against their own commitments. The big thing for us is to get action now.
Click to expand...
Is this a good thing, or just being ahead of the curve, because when the consensus is: "[a]rguably the biggest impediment to more plastic recycling is economic. Plastics are incredibly cheap and good at what they do"?

When the conventional viewpoint, and where the political pressure will mount, is that as a community
... we have to address the price differential between plastic made from fossil fuels and plastic that is recycled. It’s just so cheap to produce fossil fuel-based plastic that even if you wanted to try and get recycling online, even with great waste collection systems in place, most of the recycling technologies and recycling companies aren’t in the money". “You have to address that price inequality that exists between these two products.”
Click to expand...

The recycling challenge in Australia has become all the more pressing since China’s decision in early 2018 to stop taking Australia’s recyclable waste. Councils have been scrambling since then to come up with alternatives, and much of the waste carefully separated out by households has wound up as landfill.

Pact chairman Raphael Geminder believes this saga will be the wake-up call Australia needs to begin taking recycling seriously.
“We are excellent at picking things up, we are pretty good at processing the material, but for a long period of time we’ve relied on export markets to take that material and value-add it,” he says. “The industry hasn’t really progressed because that’s been an easy out for Australia. The truth is, we’ve just simply taken our raw material, sent it off to Third World countries and prayed that it lands in the right hands and that it’s managed and recycled correctly.”
Click to expand...
 
shares in Melbourne packager Pact Group ended the day down 12.5% after the company surprised with news that a major asset sale has fallen over, thanks to the pandemic’s lingering effects.

Pact is controlled by Melbourne billionaire Raphael Geminder and the news that it had ceased the sales process of its Contract Manufacturing businesses came as a shock because investors had considered the deal as being ‘done.’

But not so. Pact said in the trading update said the division was suffering weaker demand and lower margins due to higher input costs while a number of its businesses were dealing with higher raw material and international freight costs.

So that seems to have made the business unsaleable for the moment.

The stock dropped more than 15% to a low of $2.90 after the announcement and struggled back to end at $3.10, off 10% for the day.

“I have consistently advised shareholders we would sell the business if the sale process met our value hurdle. Continued market uncertainty and supply chain disruption arising from COVID-19 has created challenges in realising our expectation. At this time, we believe retaining the business delivers greatest value for our shareholders,” Pact’s CEO Sanjay Dayal said in Wednesday’s statement.
Click to expand...

Pact says demand remained resilient in the Packaging & Sustainability and Materials Handling & Pooling segments for the first quarter, “with higher raw material and international freight costs well managed.”

Pact says the Contract Manufacturing segment demand was weaker than expected, impacted by COVID-19 lockdowns, and margins were lower due to higher input costs.

It will provide further trading update will be provided at the company’s AGM next month which has been put back two weeks to November 29.
 
Was debating to have ORA or PGH and did skimmed some info on PGH. DNH either of the two.
  1. PGH has a large shareholder who is represented by a non-executive Chairman who has also put his own money - significantly. That makes the flow of exchange almost illiquid.
  2. Vol of the transaction is rather low and I do not know how could the open trade was beneficial for ASX
  3. PE is very low.
  4. Insider purchase is very high compared to sell
  5. https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4
  6. https://cdn-api.markitdigital.com/a...access_token=83ff96335c2d45a094df02a206a39ff4 - look at his three last purchases - volume and purchase prcice.
1640413559997.png
1640413662973.png
 
Top