Can any one correct me with my opinion, the way I read it, those Pact tried to buy more (imported) more resins pretty much for the rest of the financial 2024 year for storage and spent pretty much chunk of money for reallocation and consolidated into couple of mighty jumbo mumbo super manufacturing plants and warehouses to distribute in Australia. While they tried to close down many plants offshore and claiming supply issues?
The way I read it, just like the last take over, their heads are thinking, look we buy all the resins first to sabotage the result, and then move all productions into couple of fortified castles and screw the rest of the outposts. By that, we announced that the US tariff may change buyer's decision and so our trading could be soft and blah blah blah and while scaring everyone, we grabbed all offshore contracts and put it into the major hubs which RG owned 88% of it. The way I read from ORA channel is that the company expected interest rate will reduce and so with the destocking level by consumer starting late end of this year.
Either way, even from UN plastic treaty news and ORA predictions, I would only assumed this is RG's last ditch to shake many holders even to complete his acquisition at a friction lower price of $3. My view is that, the tariff is a bit mumbo jumbo from the US ends, but plastic ends was spared because that Trump wanted to drill more oil and plastic is just a part of oil-by-pass procedure so I won't be too sure oil price going to go up like other materials. Volatile can be two ways you know, and I think oil price will come down but people will move on to recycled plastic or other solutions to get rid of pollution. People still demand for plastic just like other productions but plastic comes with lesser tariff.
Pact said it may be volatile for the rest of the year with soft trading, but the way I see it, this Sanjay only counted ahead from the present to the next 4-6 months or so. He announced what would be the best strategy to keep the company intact or so with the best financial result he can give while still going around say 'volatile' as his excuse. I am not quite sure there, because my expectation for the CEO is to read through to the end of the year by December 2025 not by his financial year calculation. But well, he has done ok to keep this Pact in survival mode so far hehehe.
Just my opinion
PGH Price at posting:
$1.18 Sentiment: Hold Disclosure: Held
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