buying, page-19

Good thread all.

Agree at the moment PXUPA is effectively an interest free loan to PPX and the best result for both PPX and PXUPA is for a PPX recovery.


Current issues are:

- Unless there is a turn around, any PXUPA conversion to PPX is meaningless / worthless.

- PXUPA holders have only $11 to lose at current traded price.

- The "responsible entity" (or whatever they are called) valued PXUPA at $23 ie conversion 230 to 1.

- If PPX liquidated /sold then (by memory) PXUPA holders may get $40 to $100 (say $60+) based on asset values ex the Waterstone report.

- PPX doesn't have cash to buy out PXUPAs even at a bargain rate of say $15 + partial conversion of say 130 to 1 (ie ~ $23 total)

- IMHO as any conversion would see PXUPA holders lose their priority over PPX holders it would require an inducement...say $60+ (cash/conversion mix) to obtain PXUPA holder approval.

- A conversion at 230 to 1 ie ~ $23 would see the number of PPX holders double and potentially see changes on the board. Even more marked at 600 to 1 ie ~ $60 per PXUPA. Is the board open to this?

In summary

- I think everyone needs to sit tight on this one and wait (hope) for the turn around.

-If however PPX wants to take out PXUPA to expedite its recovery, then would expect ~$60 in cash/conversion may be required.

Currently PXUPA only