PSH - Penrice Soda Holdings

[ta2693]

Penrice Soda Holdings (PSH) listed on the ASX on 4 July 2005 and is the only manufacturer of soda ash in Australia and is the leading supplier of soda ash and sodium bicarbonate to the local market.

Soda ash is used as process chemical for waste water treatment at mine site.
Soon Australia is going to have a lot of new mines, because of the booming mine industry. So the Soda ash needs would be huge after the the new mines are set up.

PSH is the only manufacturer of Soda ash in Australia and Leading supplier. I think its future is very bright.

right now p/e is 9.14. dividend 8.8% per year 100% franked
market cap 65m

I feel it is a very interesting company and worth doing more research.

 

[Boyou]

Hi ta 2693,thanks for the heads up.I think you are definitely sniffing out a new frontier..have been trying to keep an eye on suppliers/facilitators to the mining boom .

May I ask if you have any shares in PSH?

Cheers Ya'll

 

[Ken]

I have watched PSH from listing, it was these or ABC, and I preferred ABC.

Something is unloved about PSH.

Not sure what it is.

I think they havent delivered, and they had some cost blow outs from reports I read.

Australian Stock Report has them as a buy but they seem to have everything as buy.

 

[ta2693]

Hi ta 2693,thanks for the heads up.I think you are definitely sniffing out a new frontier..have been trying to keep an eye on suppliers/facilitators to the mining boom .

May I ask if you have any shares in PSH?

Cheers Ya'll

No I am still not in.
Its bright future is just from my logical deduction. I needs someone with mining expertise to confirm me.

First, Is the soda ash really so important in mining industry? how much does a mine spend on soda ash every year?

Second, Is there any alternative way which does not use soda ash for treating waste water?

Just as Ken said "something is unloved about PSH". The chart of PSH can confirm Ken's words.

 

[ta2693]

Soda ash is very important for metal smelting. but Most of Australian companies
are just mining company. i.e. dig out and ship to China. That is why PSH is not as promising as I first thought.

 

[mambowoods]

i wouldnt touch it imo at this stage. lets just say there is a large potential for lost production and big maintenence costs. has just changed over the ceo which may be a positive but will take a while to get the maintance up to speed. new water plant a start
cheers

 

[daaussie]

I have some good news for you. Soda ash is important for making wine glass bottles etc.
Recently my stock broker recommend this as a buy, analysed the stock at going to $2.50 within 12 months.
2 weeks later, the stock has already risen 20-25 cents to $1.55.
This together with the dividend makes the stock very attractive so I bought in.

I cant remember the deal exactly, but the reasons for their price prediction are as follows:
A company has contracted PSH to purchase ALL the soda ash they can mine!
So their profits are secured.
The downturn in price from $2.30 to $1.30 was due to some problems with the plant which they have now resolved, and hence their profitably should go up to where it was before, hence their true value is $2.30, just the market hasnt realized this (except my broker here earlier than the rest).

The other thing is that the company has employed some sort of production manager, or someoen like that to oversee productivity and it is estimated that productivity will go up 15% with this persons skills and position.

Hence their price is expected to increased from $2.30 to 2.50.

But I really like their dividends which are very healthy, so along the way y ou could earn around 8-10% or more in dividends as well as nearly doubling captial, in 12 mths, i was in!

Good luck all PSH holders.

 

[daaussie]

I purchased at the upper end when the price of PSH went from $1.30, to $1.42, i bought in at $1.42. Since then, the price hovered between $1.38-1.42. Then all of a sudden in the last 2 weeks, the price has done 5 or 10 cent jumps followed by a day of consolidation to reach $1.67 today!

It is truly a stock onto its target of $2.50. Lets see how long it takes to get there.

Has nice dividends coming up too, which should push it along

 

[countryboy]

a few more questions thoughts on this stock
Website makes a mention of growth but does not appear to be a high priority,They were at one stage importing soda ash to meet contractual obligations.The new CEO you would think would try to position this company to be expand production rapidly to take advantage of its near monopoly position.

full year dividend date-couldnt see last years date unless it was buried in the 79 page An report for 06. Does anybody know when it is ? and saw it mention on another thread an 11c FF dividend- assume that was for 06? If iam going to jump i want the second half dividend which they predict will behigher than first half.(45 day hold)

The info about the water plant- that is obviously inside info- do you know someone who works at this site ?

thanks-PSH looks tempting at the moment

 

[DionM]

Interesting recovery recently on this one.

Is it due solely to the recent report about them protecting themselves from future AUD strengthening, and improvements to plant?

I hold PSH mainly for the nice dividends, however some SP growth never goes astray!

 

[DionM]

Well after a bit of a bumpy ride of late some good news out (contracts awarded) and the SP has responded positively.

 

[travwj]

Anyone know the reason for the recent share price increase??? I like it, but am unsure why it has risen.

Thanks

Trav

 

[DionM]

After holding out reasonably well over the last 12mths of uncertainty, she's taken a big dive today for no reason as far as I can tell? Falling AUD only helps exports for this company ... I'm a bit of a loss to explain the recent drop?

 

[travwj]

I don't think there has been much today that hasn't taken a fall. But it had help out well over the past 12 months and even had share prices rise while most stocks were falling. Hoping that it will bounce back and it does pay nice divedends so that another good reason to hold onto. But have no explaination for it's fall.

Best of luck

Trav

 

[Sunburnt]

trading halt today - announced share placement (6.8 million shares) at $1.25. Hoping to raise 8 million dollars, representing 15% of capital. Its interesting they paid a large dividend just recently and are now undertaking a capital raising. They paint a reasonably positive picture for the future though, so am curious to see how the market reacts (if at all)......

 

[DionM]

Interesting, that was very out of left field - never saw a capital raising coming. Interesting chairmans address, for sure. First loss, hinting at a reduction in dividends ... interesting.

 

[travwj]

Penrice in a trading hault until friday...any idea what it could be about? I am hoping for some positive news. This company very rarely release information to the public, and i think it would be good to make there business profile better known. Anyway here is hoping for some good news from Penrice.

Just my 2 cents.

Trav

 

[So_Cynical]

October-2008 trading halt today - announced share placement (6.8 million shares) at $1.25 Hoping to raise 8 million dollars, representing 15% of capital.

May-2009 Penrice in a trading hault until friday...any idea what it could be about? I am hoping for some positive news.

Pretty sure the above halt in May 2009 was for a capital raising at 85 cents for instos and 70 cents per share for retail investors raising over 30 million.

Anyway PSH fell off a cliff early last week after a bad earnings ann, and still hasn't hit bottom...well bounced a little of Fridays low of 51.5 cents, down over 40% for the week. the 5 year charts a shocker but amazingly i can still find things to like about this company, that ive been watching for over 20 months.

For the 3 years PSH did pay dividends they averaged about 11 cents per share, per year, so at current price even half that would be a great return, probably couldn't expect much more than that considering all the shares they have been issuing over the last 2 years.

Its a bit of a worry why im attracted to shares with charts like PSH.
~

 

[travwj]

Well Penrice has taken a good fall lately...here is a chart to have a look at...this is the lowest this share has been...not looking good.

Here is a chart...is there any upside to this company...i hold PSH


Cheers

Trav

 

[Miner]

Well Penrice has taken a good fall lately...here is a chart to have a look at...this is the lowest this share has been...not looking good.

Here is a chart...is there any upside to this company...i hold PSH


Cheers

Trav

Thanks Trav for the chart. Ironically or cynically PSH has always been a down hill trend. The recent financial result has contributed to it.

Recently Keith Neilson of Inside Traders advised his exclusive 100 agents to buy PSH heavily when it was at 75 cents. But whosoever has followed his advise got further loss. Ironically Wilson HTM has given a solid buy at 85 cents only in Feb 2010. See attached. All interesting but is it showing an opportunity DYOR.

Technical strength is good but with the economic down trend soda ash for glass manufacturers is IMO a long call even if the company apparently got good order recently.

I just entered into PSH at 47.5 cents and finding it is sliding still . Wil wait for further fall to upload more.