PPY - Papyrus Australia

[pixel]

My chances in the November Comp don't look all that promising anymore.

 

[greggles]

PPY up 122.22% to 2c today. No news or any other obvious catalyst for the move. Today was the largest volume day this year, so perhaps there is good news coming?

 

[barney]

PPY up 122.22% to 2c today. No news or any other obvious catalyst for the move. Today was the largest volume day this year, so perhaps there is good news coming?

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Hey G …. I had a look at this during the day in between "real work" …… I have to say I am as sceptical as a Sagittarian who doesn't believe in astrology … and I'm definitely not a Sagittarius!

Seriously, it looks as dodgy as all hell …….

"Sophisticated" Investors recently convert their 1 cent Options .. and the share price suddenly sky rockets for no particular reason ….

I notice the CAG share price has been "frozen" since they played "dodgeball" This looks similar only we have an "Indian" in the driver's seat ….

Over to you ASIC

 

[greggles]

Hey G …. I had a look at this during the day in between "real work" …… I have to say I am as sceptical as a Sagittarian who doesn't believe in astrology … and I'm definitely not a Sagittarius!

Seriously, it looks as dodgy as all hell …….

"Sophisticated" Investors recently convert their 1 cent Options .. and the share price suddenly sky rockets for no particular reason ….

I agree barney. Something is definitely not right here. I suspect that there is a capital raising on the cards at some point in the near future and the share price is being pumped up so the funds can be raised with less dilution.

I may be wrong, but that is my suspicion nonetheless. Time will tell.

 

[greggles]

Noticed PPY is up a whopping 170% today and is currently trading at 5.4c, up from yesterday's close of 2c.

This morning the company announced that after failing to produce banana veneer and paper products in Australia in far north Queensland due to insufficient production volume coupled with high labour costs and incorrect product choice, PPY has established operations in Sohag, Egypt through Papyrus Egypt as a joint venture entity.

The company has further informed the market that the Egyptian operations are now profitable and that the prospect of licencing its technology in other developing countries has been very much enhanced because of that profitability.

So, things appear to be looking up for PPY after a number of setbacks in the past. I'm not interested in PPY, but thought it was worth an update today after this morning's announcement.

 

[barney]

And currently up 330% at 086 cents ....... I wouldn't like to be the last one holding the parcel this arv though.

 

[greggles]

And currently up 330% at 086 cents ....... I wouldn't like to be the last one holding the parcel this arv though.

That's for sure!

PPY has a history of extreme share price movements. Pixel's chart from October 2017 shows a move from 1c to 5c in two trading sessions.

It sure can bolt like a thoroughbred racehorse on good news. The ride up may be exhilarating, but the ride down rather painful.

 

[Dona Ferentes]

This morning the company announced that after failing to produce banana veneer and paper products in Australia in far north Queensland due to insufficient production volume coupled with high labour costs and incorrect product choice, PPY has established operations in Sohag, Egypt through Papyrus Egypt as a joint venture entity.

The company has further informed the market that the Egyptian operations are now profitable and that the prospect of licencing its technology in other developing countries has been very much enhanced because of that profitability.

looking like the Egyptians know a bit about papyrus

 

[barney]

Before today's spike they had a Market Cap of $6 million (positive).

They only had $23,000 in cash in their last 4C (negative)

Sales for October at $256 EGP (similar value to AUD) (positive but still minimal)

A cap raise will be required soon, you'd think. (negative)

Plenty of Traders involved with over $7 million traded already today, but a bit too iffy for me

 

[Dona Ferentes]

Cap raising a certainty!?

 

[Dona Ferentes]

gets a mention in Stockhead article

Papyrus develops technology that converts the waste trunk of the banana palm into products used in the packaging, furniture, and construction industries. The company says its products have qualities not found in existing wood-based products, due to the ability to preserve the inherent natural qualities of the banana tree trunk.

The focus of the company in the past year has been to expand its Papyrus Egypt business, and apply its know-how in a developing country where bananas are grown. The company has also had success in Japan, exporting its veneer products to the Yamaha musical instruments manufacturers, as well as a recent licensing agreement in China for its technology.

The latest half year of FY21 shows $0.18 million profit before tax. But not getting your 4D's lodged in time is not a good sign.

Earlier triggers:
$500,000 strategic investment by L39 Capital, a small cap fund in early Oct (Cornerstone!)
6th November news was progress in Egypt
Oh, yes, and there was the Cap Raise, on 02 December. $3million from institutions.
And a Director resignation.
news on 08/02/21; Rights to 'exploit' technology in China

and usually a selloff soon after, each time!
Market cap under $20M