Midway ( 2020 ) ASX

Australia’s largest woodfibre processing unit with over 70,000 hectares under management as per 2019, it is one of the most beautifully made company out there, still is it worth to buy its shares at 0.98$ ?

The company got listed and after that it has showed some remarkable growth in its revenue growth from from 0.51% to 22% at the end of 2019, is sales justifiable for its share price which was 3.8$ upwards in aug 2019, the shares have dropped significantly from 3.8$ afterwards.

Is company a good buy with current price range , the answer is NO , according to our analysis the company have been overvalued since it has been listed, and its not advisable to buy its share for the long run, the main drivers kicking in are Brazilian products where their market share to china is increasing year over year , also its competition with peers and china ban for its exports in USA , which was mentioned in company’s website.

We made an in-depth – analysis various financial instruments, thus for short run it might be profitable for long run there may be few other good alternative.

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