ppx directors are buying more

It's worth noting that the Directors in Paperlinx are busy buying shares. They obviously know it is now oversold.

Huntley's now say accumulate
The FY07 result improved, slightly below forecasts. EPS rose 12% to 16.3c versus 17.5c forecast. NPAT gained 12% to $74m after paying the $6.6m hybrid preference share distribution. Headline NPAT rose 23% to $80m. DPS added 10% to 11c unfranked, including the final 6c.

PPX is moving in the right direction – hurt much less by the stronger A$ than before. It continued slightly reducing costs, essential for a low margin scale business. Group volumes only lifted 2% to 4.3Mt. Sales rose 6% to $7.8bn. EBITDA margin finally rose after falling for six consecutive years – still only one third of peak cycle levels.

The global wholesale paper distribution business, Merchanting, increased EBIT 9% to $205m. European Merchanting EBIT gained 11% in local currency to euro83m, Germany strong, UK weak. Standout was North American Merchanting with EBIT up 36% to US$40m including acquisitions. Merchanting is improving as a viable global business, sharing best ideas but honouring local client relationships. It halved lost time injuries over three years, while lowering the working capital to sales ratio. This helped lift its Return on Funds Employed from around 10% to nearly 12%, still below the 15% target but above what the capital used costs – so it is delivering value to shareholders even with a scant EBIT margin below 3%.