GTP - Great Southern Plantations
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From http://www.theage.com.au/news/busin...n-harder-ground/2007/02/26/1172338547593.html
Hardwood timber falls on harder ground
February 27, 2007
THE drought is making life tough in both town and country, but this week the big dry claimed a big scalp.
Queensland Paulownia Forests Ltd (QPFL) ”” a forestry company that trades on the Bendigo Stock Exchange, and planned a listing on London's Alternative Investment Market just two years ago ”” has gone to the wall owing close to $100 million. It has also taken 457 convertible noteholders down with it.
Paulownia is a hardwood from China that has been grown in Australia for 50 years. It grows an astonishing three metres a year ”” meaning it can be harvested after just six to seven years ”” but its use as timber has only been recent.
QPFL established the first of six plantations in southern Queensland a decade ago, after spruiking that the wood could be a replacement for western red cedar in the building industry, and even to make surfboards and coffins.
Severe drought has made the planting of the tree almost impossible. Paulownia needs to be planted at a depth of one metre, but the company has struggled to dig 50 centimetres into the parched earth of Forbes in NSW, where it has a 1600-hectare plantation. Drilling costs have more than doubled, there has been little rain to supply the 200-kilometre drip irrigation system, and cash flow has been hit by bad debts from drought-stricken creditors.
The company went into voluntary administration last week and its shareholders, who have ploughed almost $80 million into the company, will learn more about their fate at a meeting with Worrells Solvency and Forensic Accountants on the Gold Coast tomorrow.
The company's 9 million convertible notes last traded at $1 each.
Major shareholders include chairman David Gold, Stephen van der Mye, who once ran the Queensland Industry Development Corporation, and Queensland Liberal leader Bruce Flegg ”” the richest man in the state's Parliament.
Marshall Hall of Bare Publicity said the company needed a "white knight" to survive.
Hardwood timber falls on harder ground
February 27, 2007
THE drought is making life tough in both town and country, but this week the big dry claimed a big scalp.
Queensland Paulownia Forests Ltd (QPFL) ”” a forestry company that trades on the Bendigo Stock Exchange, and planned a listing on London's Alternative Investment Market just two years ago ”” has gone to the wall owing close to $100 million. It has also taken 457 convertible noteholders down with it.
Paulownia is a hardwood from China that has been grown in Australia for 50 years. It grows an astonishing three metres a year ”” meaning it can be harvested after just six to seven years ”” but its use as timber has only been recent.
QPFL established the first of six plantations in southern Queensland a decade ago, after spruiking that the wood could be a replacement for western red cedar in the building industry, and even to make surfboards and coffins.
Severe drought has made the planting of the tree almost impossible. Paulownia needs to be planted at a depth of one metre, but the company has struggled to dig 50 centimetres into the parched earth of Forbes in NSW, where it has a 1600-hectare plantation. Drilling costs have more than doubled, there has been little rain to supply the 200-kilometre drip irrigation system, and cash flow has been hit by bad debts from drought-stricken creditors.
The company went into voluntary administration last week and its shareholders, who have ploughed almost $80 million into the company, will learn more about their fate at a meeting with Worrells Solvency and Forensic Accountants on the Gold Coast tomorrow.
The company's 9 million convertible notes last traded at $1 each.
Major shareholders include chairman David Gold, Stephen van der Mye, who once ran the Queensland Industry Development Corporation, and Queensland Liberal leader Bruce Flegg ”” the richest man in the state's Parliament.
Marshall Hall of Bare Publicity said the company needed a "white knight" to survive.
Out Too Soon
My real name is King Julian ;)
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Jackob said:
Some of my neighbours tried growing that timber on their 20 acres after advice from dept of primary industry up here, needless to say the trees all died.
Comparing a paulownia plantation to industry standard pine or whatever is like comparing Ostrich farming to the beef or lamb industry.
: - a few ppl have tried ostrichs up here too,
You need real high strong fences, real high. The Paulownia tree, also known as the Chinese Empress tree, is considered to be the world's fastest growing tree. In China they say that if you plant a Chinese Empress tree when your daughter is born, she'll have enough wood to build a house when she's married.
Under ideal conditions a Paulownia is capable of growing half a metre in a week. Unbelievable but true......I have several Paulownia trees growing in my garden, and over a period of a couple of months of wet and humid weather during summer when the trees were young, they did indeed grow half a metre a week. However, once the rain ended and the cool weather arrived, the growth rate of the trees slowed down considerably. Also, as they got older their growth rate became less impressive. Over a period of years they've grown at a rate comparable to the fastest eucalypt trees in my garden.
I'm surprised to hear that Paulownia seeds need to be planted a metre deep in a plantation situation. Numerous seedlings come up under my trees each year - the seeds that produce them are hardly buried at all, but they do have considerable leaf mulch providing a natural coverage and a moist environment that's conductive to germination.
It never ceases to amaze me that people, including some who are high profile and financially successful (e.g. Bruce Flegg), invest in companies involved in high risk agricultural ventures.
Regardless of whether it's Paulownias, olives, ostriches, aloe-vera, whatever....investors invariably charge in and lay their money down whenever somebody cooks up a scheme to attract investment dollars for some u beaut farming venture.
I guess I'm a natural sceptic of agricultural ventures. Having spent many years in agriculture myself, I know only too well the adverse effect that drought and various other factors can have on these sorts of schemes. Not for love nor money would I be tempted to invest in them.
Bunyip
Under ideal conditions a Paulownia is capable of growing half a metre in a week. Unbelievable but true......I have several Paulownia trees growing in my garden, and over a period of a couple of months of wet and humid weather during summer when the trees were young, they did indeed grow half a metre a week. However, once the rain ended and the cool weather arrived, the growth rate of the trees slowed down considerably. Also, as they got older their growth rate became less impressive. Over a period of years they've grown at a rate comparable to the fastest eucalypt trees in my garden.
I'm surprised to hear that Paulownia seeds need to be planted a metre deep in a plantation situation. Numerous seedlings come up under my trees each year - the seeds that produce them are hardly buried at all, but they do have considerable leaf mulch providing a natural coverage and a moist environment that's conductive to germination.
It never ceases to amaze me that people, including some who are high profile and financially successful (e.g. Bruce Flegg), invest in companies involved in high risk agricultural ventures.
Regardless of whether it's Paulownias, olives, ostriches, aloe-vera, whatever....investors invariably charge in and lay their money down whenever somebody cooks up a scheme to attract investment dollars for some u beaut farming venture.
I guess I'm a natural sceptic of agricultural ventures. Having spent many years in agriculture myself, I know only too well the adverse effect that drought and various other factors can have on these sorts of schemes. Not for love nor money would I be tempted to invest in them.
Bunyip
QPFL has been on the ropes for some time with most of their properties suffering poor soil structure, pest problems (wallabies) eating flicker tape irrigation lines, running out of water and general drought conditions.
The Forbes property is the newest as most are in Queensland and are still struggling and even at dieback. Enough said.
Forbes even has salinity issues itself in sections. This company is so crazy that they went ahead with a planting in Forbes last year at the end of December in 30+oC temperatures. Contractual arrangements I believe but a sign of the lack of proper management of this company.
Anyway when you have a company buying up properties, sawmills and handing their executives V8 Lexus landcruisers to drive in the worst "so-called" drought in 100 years whilst their offices are on the Gold Coast and no probable income from trees that aren't growing you can see why this co. is going under quicker than the titanic.
I feel sorry for the investors on this one.
The Forbes property is the newest as most are in Queensland and are still struggling and even at dieback. Enough said.
Forbes even has salinity issues itself in sections. This company is so crazy that they went ahead with a planting in Forbes last year at the end of December in 30+oC temperatures. Contractual arrangements I believe but a sign of the lack of proper management of this company.
Anyway when you have a company buying up properties, sawmills and handing their executives V8 Lexus landcruisers to drive in the worst "so-called" drought in 100 years whilst their offices are on the Gold Coast and no probable income from trees that aren't growing you can see why this co. is going under quicker than the titanic.
I feel sorry for the investors on this one.
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Been following the recent info in this thread - actualy found this forum because I wanted to know wtf was going on with GTP.
All very interesting. I just hope theres a light at the end of the tunnel.
The main think I didnt understand was how the shares were dropping when their latest report suggested big increase in profits. I think i get it now from the above..
That due to this new law, their recent project with questionable enviromental afffects, and possible big buyers doing some trickery - is all playing a part in this?
Is that a correct summary?
Still thinking there will be a further drop?
tempted to buy more at the lower cost but not until i see more movement in it..
All very interesting. I just hope theres a light at the end of the tunnel.
The main think I didnt understand was how the shares were dropping when their latest report suggested big increase in profits. I think i get it now from the above..
That due to this new law, their recent project with questionable enviromental afffects, and possible big buyers doing some trickery - is all playing a part in this?
Is that a correct summary?
Still thinking there will be a further drop?
tempted to buy more at the lower cost but not until i see more movement in it..
Out Too Soon
My real name is King Julian ;)
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Looks like GTP had just about dropped enough. Question is When this correction is over will GTP shoot up with the rest? The latest beef project is over-subscribed, so much for the new tax rules having an effect. NOT!
Good as GTP is looking though I'm honestly thinking I should be putting my spare cash in ZFX, OXR, BSG or some other oversold co. when we finally hit bottom.
Your thoughts GTP followers?
Good as GTP is looking though I'm honestly thinking I should be putting my spare cash in ZFX, OXR, BSG or some other oversold co. when we finally hit bottom.
Your thoughts GTP followers?
Out Too Soon
My real name is King Julian ;)
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Ahhh stop vacillating! GTP's going up while everything else is plunging- no brainer- I'm back in.
Porper
Ralph Nelson Elliott
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Out Too Soon said:Ahhh stop vacillating! GTP's going up while everything else is plunging- no brainer- I'm back in.
I think you have your chart upside down out too soon.
Turn it the other way up and you will see that in the last 3 weeks it has gone from $2.40 to $2.04.Just having a retracement from the current strong downtrend i.m.o.
Out Too Soon
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Porper said:I think you have your chart upside down out too soon.
Turn it the other way up and you will see that in the last 3 weeks it has gone from $2.40 to $2.04.Just having a retracement from the current strong downtrend i.m.o.
If I hadn't been vacillating I'd have bought at 1.95 or so yesty. In my portfolio everything has a red arrow next to it except GTP (just bought) & DLS (hardly exciting .5c after falllllll).
GTP is currently like a strong swimmer swimming against the current.
I have info on a new product from GTP. The high value timber project HVT is stuff like teak and african mahogany.
$12500 per woodlot and a 17-20 year rotation!
Project size is 2000 woodlots + oversubscription.. Some returns in years 8-14 due to thinning (up to 3 times estimated).
GTP gets %15 of the harvest.
I've been told its slower growth but much higher quality timber..
$12500 per woodlot and a 17-20 year rotation!
Project size is 2000 woodlots + oversubscription.. Some returns in years 8-14 due to thinning (up to 3 times estimated).
GTP gets %15 of the harvest.
I've been told its slower growth but much higher quality timber..
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Seems to be clawing its way back up! 2.13
while half my others are still in the red.
so this new venture could be good, but we wont see the revenue for a long time?
while half my others are still in the red.
so this new venture could be good, but we wont see the revenue for a long time?
Out Too Soon
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pch said:
I have 3 African Mahoganys at home, lovely big tree, easy fast growing, I'm tempted to clear some of my block & put 100 in, just have to cut off the branches as they grow so you have one long smooth trunk apparently.
I wonder if a harvest period this long presents opportunities for a future carbon credit system? It would be a great additional source of revenue..
Out Too Soon said:I have 3 African Mahoganys at home, lovely big tree, easy fast growing, I'm tempted to clear some of my block & put 100 in, just have to cut off the branches as they grow so you have one long smooth trunk apparently.
Out Too Soon
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The GTP knockers will snicker but what's happened to GTP's interim dividend??? I can't see any ann about it. Not a great way to keep your shareholders happy.
I can't see any ann about it. Not a great way to keep your shareholders happy.- Joined
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The GTP knockers will snicker but what's happened to GTP's interim dividend???
GTP moved their reporting year back 3 months last year. Interim dividend likely to be paid in July instead of April.
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7.5% Dividend Yield.
No brainer.
Capital Gains will follow a high Dividend Yield.
Reasonably blue chip (and timber chip!) stock with modest leverage available from Margin Lenders in acknowledgement of this and their consistency to pay Good returns.
Also, I called the company and have confirmed, Dividend is due MAY or JUNE simply due to the 3 month shift in their financial year reporting to Sept. Simple as that, nothing else.
Final Dividend wil be NOV - DEC.
Im looking forward to my nice Dividend Yield. Loving this share price as I accumulate more.
Check out Huntley's recommendation.
Happy Investing.
No brainer.
Capital Gains will follow a high Dividend Yield.
Reasonably blue chip (and timber chip!) stock with modest leverage available from Margin Lenders in acknowledgement of this and their consistency to pay Good returns.
Also, I called the company and have confirmed, Dividend is due MAY or JUNE simply due to the 3 month shift in their financial year reporting to Sept. Simple as that, nothing else.
Final Dividend wil be NOV - DEC.
Im looking forward to my nice Dividend Yield. Loving this share price as I accumulate more.
Check out Huntley's recommendation.
Happy Investing.
