New Toyo

[greengiraffe]

I have to agree with you on this fact. Historically, cigarette packagers do not have good track record of earnings stability.

Investors who are looking for exposure in tobacco industry are better off buying direct exposure in the tobacco companies and can forget about packagers.

I have shared my experience. You have shared yours - time to hands off the stock again.

GG

Tien Wah just released its Q2 results which were worse off, compared to last year...And by extension New Toyo's result will not be good.
Tien Wah has cut its dividend - New Toyo might follow suit...


Group’s revenue for the second quarter ended 30 June 2013 reduced by 4.2% or RM4.4 million to
RM101.4 million from RM105.8 million in the preceding year corresponding quarter. The current quarter
2013 results were impacted by sluggish demand in certain cigarette related packaging products.

Plus Aussie dollar is set to continue to weaken over the next few quarters... Tien Wah's operations in Australia will continue to be impacted by forex losses..

This has shown that tobacco packaging is not as resilient as what people think it to be...