G’day MarsC, Thanks for your thoughts and comments, I always...

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daicosisgod

12,211 Posts.

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09/11/23

08:23

Post #: 70799032
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Originally posted by MarsC ↑

I believe IVE currently generate about 50% of their revenue from traditional printing (catalogues, mags etc). The way I look at at, there are two elements to "growth". One is whether or not decline is terminal, or whether a new normal has been reached. Two, whether or not unit economics can improve with greater market share & fewer players (the caveat being the strength of the customers).

So more than "growth", I'm thinking in terms of stability & durability of earnings, with room to adjust pricing to match input costs (inflation). It's a less glamorous version of "growth", but it's a less sought-after one.

You give the sense, above, that Opal is possibly heading for the exits. I don't think that's correct.

IVE have indicated that they will be seeking shorter runs, to avoid competing with the likes of Opal. My question is whether or not these designs are unique to IVE. If so, why?

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G’day MarsC,

Thanks for your thoughts and comments, I always read what you post.

The view on overseas players, including Opal, came from a current prominent packaging operator here in Melbourne. I posted all the feedback my industry contact gave to me.

It is not an industry I know well, I am still learning but I am quietly confident that Geoff Selig and his management team will generate very good returns once Ovato is bedded down. The move into packaged seems to get the tick from most people.

Cheers……D

IGL Price at posting: $1.95 Sentiment: Buy Disclosure: Held
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0 Great analysis

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