TIM - Timbercorp Limited

[moby]

TIM - Timbercorp

What do you guys think of Timbercorp. Looks like it could take off soon. Its been smashed since July and still hasn't recovered. Apparently they have tax issues. Anyone have any info. Its found strong support at 2.70 i was thinking of entering on close about 2.90?

Also anyone downloaded the new sharetrading game.. $25k cash prize Sounds good! Although i haven't downloaded it yet. I want to do a write up on it for my site? www.sharetradinggame.com.au

 

[Jackob]

TIM - Timbercorp

Latest News: Crackdown on timber tax breaks

http://www.theaustralian.news.com.au/story/0,20867,20930223-2702,00.html

Crackdown on timber tax breaks
Steve Lewis, Chief political correspondent
December 15, 2006

THE Howard Government faces an election-year showdown with the powerful forestry sector - and Macquarie Bank - after deciding to crack down on tax breaks for mass-marketed timber plantations.

Cabinet's decision, taken this week, will also ignite another partyroom brawl, with regional MPs resisting the plan to wind back the tax breaks for the so-called "managed investment schemes". More than $2 billion has been ploughed into MIS plantations since 2000, with a small group of investment firms reaping millions of dollars in commissions and fees.

The Government has been forced to get tough amid concerns "Pitt Street farmers" were snaring lucrative tax breaks at the expense of legitimate agricultural operations.

Ministers fear rich investors are abusing the tax break, with too much money in some schemes spent on managers' salaries and commissions or inappropriate projects rather than legitimate forestry plantations.

MIS funds will now have to prove that at least 70 per cent of the investment is for actual tree plantations, or their investors lose the full tax deductibility.

Senior ministers believe the tax changes will weed out speculators, and cut down on the huge fees being paid to the small number of pooled fund managers.

"The reality is that a lot of it is city money. But this will flush them out," a senior government figure told The Australian. Another source said cabinet had agreed to the crackdown because of concerns it had been "open slather" for tax-minimisers.

"The clear view is that a lot of the money (going into MIS) is being pilfered out of it by investment bankers and advisers," the source said.

Senior ministers held a robust debate about the contentious tax plan in Sydney on Monday. It is understood Peter Costello has led the charge against the tax breaks.

Macquarie Bank, Timbercorp and Great Southern Plantations have been the main backers of MIS forestry since special tax rules were introduced in 2000.

The three have formed a peak lobby group - Agriculture Investment Managers Australia - to argue their case in Canberra.

AIMA claims that commissions paid by agri-MIS projects "are no higher than other financial products". They also point to the strong growth in plantations with more than 500,000ha of timber planted since 2000 - helping Australia meet its Kyoto target.

The National Association of Forestry Industries, which played a crucial role during the 2004 election by opposing Mark Latham's Tasmanian forestry plan, has warned that changing tax laws would "disadvantage" forestry growers and reduce much-needed regional investment.

Catherine Murphy, NAFI chief executive and a former adviser to John Howard, last night backed the MIS arrangements, which she said had worked well.

"We believe that the current MIS arrangements have delivered over $2 billion to rural and regional Australia, as well as contributing four percentage points or 20 million tonnes of CO2 annually towards offsetting our Kyoto targets," she said.

Wilson Tuckey, a former forestry minister, yesterday warned the Prime Minister he would face another partyroom revolt if he tried to tighten up tax laws.

But another Liberal backbencher, Geoff Prosser, said management fees charged by MIS firms were exorbitant and distorted regional economies.
Edit/Delete Message

 

[KaiserBun]

Big day for Timbercorp (30% odd drop) and fellow MIS providers.....

The government has decided that from July 1 investors in non-forestry MIS would no longer be able to claim upfront deductions for their contributions on the basis that the investor is "carrying on a business".

I wonder what type of impact this will have on the profits on Timbercorp, and the affect on the trusts they currently are running, and trying to start up.

 

[pbourk111]

Hey guys my first post!!

TIM is on the move.... i thought it would be a dog with such a huge exposure to non-forestry and the ATO slamming its tax deductibilty.

AGM coming up on Thursday. is it worth a punt?

 

[It's Snake Pliskin]

For the fundamental minded was the report as expected or a shock? I see the price has been punched. It was starting to set up nicely.

 

[It's Snake Pliskin]

Well this is one of my holdings which is starting to look good. Some demand is coming into it which is evident. Looking back the pieces of the jigsaw are starting to add up.

I shall pyramind from $2.21. Time frame unknown.

 

[reece55]

Well this is one of my holdings which is starting to look good. Some demand is coming into it which is evident. Looking back the pieces of the jigsaw are starting to add up.

I shall pyramind from $2.21. Time frame unknown.

Nice play Snake
There is still quite a large short position here that shorted when she broke down to 2.00. They would be very nervous players right now me thinks....

Best of luck in the position.....

Cheers

 

[It's Snake Pliskin]

Nice play Snake
There is still quite a large short position here that shorted when she broke down to 2.00. They would be very nervous players right now me thinks....

Best of luck in the position.....

Cheers

Hi Reece,

That gap day should have cleaned most of them out. If not they are gambling against the river. This stock is now in a place of strength that needs some weird action to change its direction. I may be wrong.

Cheers

 

[reece55]

Hi Reece,

That gap day should have cleaned most of them out. If not they are gambling against the river. This stock is now in a place of strength that needs some weird action to change its direction. I may be wrong.

Cheers

They were still there on C.O.B Tuesday......

TIM TIMBERCORP LIMITED 7,795,387 2.55%

This would take a few days to unwind, watch the stress of a short squeeze..... With the takeover/restructure discussions in the midst, it should appreciate fairly quickly...

Cheers

 

[nomore4s]

Well this is one of my holdings which is starting to look good. Some demand is coming into it which is evident. Looking back the pieces of the jigsaw are starting to add up.

I shall pyramind from $2.21. Time frame unknown.

Snake are you still in this one or interested in it?

I have been watching it for a while and have been waiting to see if the gap between $1.92 & $2.00 would be filled, looks to have been pretty much filled now. Showed some strength today in the last hour or so and a very good close.

I took a small position today at open, only game to take a small one with the current issues with the market and the fact this stock still has a bit of work to do. Will be looking for a prymid opp when/if it breaks through the resistance at $2.25ish.

Will post a chart later tonight, when I get home.

 

[nomore4s]

Chart as promised:

Most of the info is on the chart for this trade. Have set my stop at a close under $1.82.
Last 2 days have been quite good with closes near the highs on med to light vol. Nice wider range day today with strong close.

The second chart also shows some bullish divergence.

A lot will depend on the overall market but was willing to take the risk on this one.

 

[It's Snake Pliskin]

Snake are you still in this one or interested in it?

I have been watching it for a while and have been waiting to see if the gap between $1.92 & $2.00 would be filled, looks to have been pretty much filled now. Showed some strength today in the last hour or so and a very good close.

I took a small position today at open, only game to take a small one with the current issues with the market and the fact this stock still has a bit of work to do. Will be looking for a prymid opp when/if it breaks through the resistance at $2.25ish.

Will post a chart later tonight, when I get home.

I am out!

It got to a point of stretching the maximum loss permissable so I exited at $1.96. I notice it is back there now.

There was a lot buying support at $2 before last Thursday. But it appeared to dissipate well below so I thought it wise to take a small loss and watch it.

Huntleys stopped coverage I think, shorts may still be in on it too, don't know.

good luck with your trade.

 

[nomore4s]

Chart as promised:

Most of the info is on the chart for this trade. Have set my stop at a close under $1.82.
Last 2 days have been quite good with closes near the highs on med to light vol. Nice wider range day today with strong close.

The second chart also shows some bullish divergence.

A lot will depend on the overall market but was willing to take the risk on this one.

This trade is starting to look good, strong day today. Will take pyramid in tomorrow on open.

Will post more detail and a chart later when I get more time.

 

[nomore4s]

Chart as discussed but with the overseas markets down by a bit atm, tomorrows entry will be put on hold until the next leg down plays out.

 

[Junior]

Share price has really gone backwards this week. Anyone know why? The continued drought may have had an impact I guess.

 

[ROE]

I cant find any announcement either
Maybe someone know something we don't or maybe something
that link to high Water usage may get a general sell off due to drought

 

[ROE]

Trading halt today anyone know what's up with this baby?
is someone is making a bid for them or the dredge profit downgrade

 

[BHP]

New share issue looking to raise $70 million.

http://www.theaustralian.news.com.au/story/0,25197,22868047-5013408,00.html

 

[Rainmaker2000]

Absolute bastards.....I own a few of these as they are undervalued but I did not like their result few weeks ago and wrote a letter to 'investor relations' asking why it is that they were paying a dividend when they will obviously need to raise capital this year.................no reply to the letter and now this..........capital raising is at a stock low point which is robbing existing holders....this is hardly helped by the share purchase plan as the price will obviously hit $1.40 as the supply/demand comes to balance again..........I like the companies prospects and assets but this is mismanagement and a good example of paying high dividends reducing shareholder value.......

 

[Jackob]

Absolute bastards.....I own a few of these as they are undervalued but I did not like their result few weeks ago and wrote a letter to 'investor relations' asking why it is that they were paying a dividend when they will obviously need to raise capital this year.................no reply to the letter and now this..........capital raising is at a stock low point which is robbing existing holders....this is hardly helped by the share purchase plan as the price will obviously hit $1.40 as the supply/demand comes to balance again..........I like the companies prospects and assets but this is mismanagement and a good example of paying high dividends reducing shareholder value.......

TIM and GTP used to raise capital after the annual reports (sometimes the preliminary). Both shonky business.