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07-12-2014, 11:35 PM
(This post was last modified: 07-12-2014, 11:37 PM by Curiousparty.)
My thinking is that New Toyo is probably quite anxious to ensure that BAT renews its contract, but it is at BAT's mercy or bidding, and there is no assurance that BAT will definitely renew it with New Toyo. Even if BAT renews the contract, the volume may become much smaller as BAT parcels out to a few players instead of New Toyo alone.
There are a quite few players out there which BAT can choose to award to (e.g. Amcor, Anvig, etc). If New Toyo can leverage on the lower cost structure in Vietnam, I'm sure those Chinese printers from mainland can duplicate the same strategy as well and do it better.
If u happen to go to AGM, u may wish to "check out" the level of confidence in relation to contract renewal. This is unlike investment properties where owners can rent out for as long as possible. If no leasees, just lower price and u will get one. This is unlike BAT contract where it is a binary outcome. Either u get it or don't. If u don't get it, too bad. EPS = 0 for the next X years.
There are a quite few players out there which BAT can choose to award to (e.g. Amcor, Anvig, etc). If New Toyo can leverage on the lower cost structure in Vietnam, I'm sure those Chinese printers from mainland can duplicate the same strategy as well and do it better.
If u happen to go to AGM, u may wish to "check out" the level of confidence in relation to contract renewal. This is unlike investment properties where owners can rent out for as long as possible. If no leasees, just lower price and u will get one. This is unlike BAT contract where it is a binary outcome. Either u get it or don't. If u don't get it, too bad. EPS = 0 for the next X years.
(07-12-2014, 08:34 PM)valuebuddies Wrote:(07-12-2014, 07:14 PM)Curiousparty Wrote: How much of New Toyo's PPE pertained to its properties? I wouldn't consider its printing machines which are pretty useless without an accompanying contracts (which needed to be renewed from time to time)
what is your take in New Toyo?
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