No!!!!! Do not sell, people. LZA is on the right track here - PCG will be 90c+ within 12-18 months. CAPE are one of PCG's main trade competitors in the Middle East especially and they've timed the bid very well, as management have said, to coincide with the first flat spot PCG has had in 6 years of continuous growth. PCG are a far superior company to CAPE - CAPE have had huge problems with asbestos related issues, contract write downs etc and they're looking to make some very easy money by buying PCG out. As i said, if CAPE were successful, they'd make their money back within 12-18 months.
This bid reminds me of Cemex's bid for Rinker - both companies (PCG and Rinker) have been fantastic for shareholders for about 5 years and have excellent management and strong market positions, however both companies have been the victim of external circumstances beyond their control which has seen their shareprice fall back. Cemex's bid for Rinker at its current price level is almost certain to fail as shareholders realise how good a company Rinker really is, and i'd hope that the same outcome results for us as PCG holders.
There should be no serious consideration of any takeover offer of PCG until the price is $1.20 or more.
PCG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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