For me, this Tulikivi talc hype has seemed more like a desperate attempt. I’ve been involved in opening smaller-scale extraction areas (I’m not talking about “gravel pits” now) and I base my view on that. My thoughts may be completely wrong, but I’m also willing to change my perception.
I think people have a distorted view that the reserve would have some greater value in its current state. For an extraction area to achieve its value, infrastructure must first be built there and the area made operational. In practice, building the infrastructure for that type of quarry costs more than many believe. Tulikivi cannot afford it, and probably cannot even afford to run electricity, let alone build roads and other infrastructure for the area. Only then do they start opening the extraction area. Rather, the value of the area is currently in the order of forest land + the timber in the area.
Kainuu has good traditions of creating all kinds of development companies and painting pictures of large numbers of jobs. You do get subsidy money for the area and can hire a few people.
This Tulikivi is a funny company. Apparently, it’s so uninteresting that no one can get a proper and objective discussion going on any forum Instead, there are plenty of fans – or probably not that many, but the usernames change frequently.
@Reddit here on the Inderes forum, you can find good analyses of many companies; you should check them out for inspiration for your own texts. One-sided fanning (to make a small company’s stock price rise) is generally not looked upon favorably for very long. And if you are genuinely such a strong Tulikivi believer, I encourage you to explore other companies and think objectively about why the valuation is so different between, for example, Harvia and Tulikivi. You can find good indicators and drivers for every company, but ultimately, the result is what matters.
A zero result doesn’t seem to be enough for the markets if the company is exchanging it for €30M a year and is already valued at €20M. Especially when there are already 4-5 loss-making years behind it and the company’s debt burden is sky-high.
Does anyone have a reasoned view on what the operating profit % could rise to with the current setup if order books filled up during the beginning of the year? Can fireplace manufacturing, for example, be scaled in the same way as heaters (cf. Harvia) and what kind of annual sales could Tulikivi achieve with its current production capacity?
Let’s just say, without pointing fingers, that reading the recent messages in this thread reminds me of a certain username who frequently posted on a stockbroker’s social media platform.
Sounds unfortunately familiar. Without naming anyone, a certain individual approached several public investors with these Tulikivi sales pitches late last year.
… and before that, on the forum of a certain investment magazine. These statistics, anecdotes, and complete disregard for real discussion are exactly the same
Reddit beautifully highlights with this pricing difference how one was/is an excellently profitable company, while the other is a indebted company with weak profitability.
Nice how you chewed these numbers into such an easily digestible format.
Tulikivi could be an interesting investment target if the turnaround proceeds quickly in the coming years.
Somehow, however, it doesn’t even tempt me to delve very deeply into the company when it unfortunately seems to attract all kinds of schemers who transparently try to pump up the share price. I’m not interested in being an owner alongside such people.
How can you claim that this EcoDesign is reflected in the operating margin? Why would Tulikivi be the only one to slap an EcoDesign label on its side?
Nord Stream 2 will eventually be completed. I wouldn’t be so sure about the future of wood burning in Central Europe. Of course, these exceptional circumstances create excellent markets for wood, but is it a permanent level? I suspect not, and in time, the market for fireplaces will just continue to dwindle.
“Jøtul’s fireplaces are sold in 44 countries, and they have met the strictest regulations for many years.”
These are the immediate first results from a quick Google search. I don’t feel like spending more time on this. It’s refreshing, though, that you’re at least showing some willingness to discuss, Přédak.
I assume we agree that you write, among other things, under the alias Přédak. This happens on various social media platforms, promoting Tulikivi, in which you or your close circle have a significant sum invested. How does this relate to the company or investing in question? It does relate, if someone, especially an owning party, tries to significantly influence a public company’s share price by targeting small investors with guerrilla marketing and hype.
PS. You don’t have to answer this. Silence is a sign of consent.
This is quite a case, the same guy is spamming messages with different accounts and even trying to have a dialogue with himself. But unfortunately, Reddit got banned. Morning medication is almost the most important thing so that the day goes pretty nicely
I wonder if the pin-striped men have been here reading and taken heed? I sold all my tulav holdings because of the puffery presented here. I always become a doubting Thomas when I notice someone pursuing such an agenda.
And what might be Mr. Korhonen’s connection to Tulikivi? You know Tulikivi’s operating margins as well as job applications and the Kainuu Social Democrats’ websites in detail.
During my long investment career, I’ve noticed that every business matter connected to political activity is a significant risk rather than an opportunity for any company. Politics should absolutely be kept separate from these things.
Politics has been heavily involved in Kainuu-based companies; Talvivaara, perhaps Tulikivi as well?
It’s certainly not a sign of a good publicly traded company if regional pork-barrel politics significantly affects profitability.
Instead, there are plenty of fans – or probably not that many, but the usernames change frequently.
