Its a bit of a pain on the dilution/spin off side, but I think at the end of the day it will probably be "growing pains".
I spoke to Maureen to try to get a clearer understanding.
Some things stand out in the report.
First Paramount will of course, continue to hold a percentage of the "new" companies, thus as their value grows so will the parent co.
Secondly, the spin off will involve some significant new assets, rather than simply dilution of the current assets.
Third, they plan to have an income generating asset in Australia in the medium to short term.
So, imo once the market adjusts and the process is under way we should see added sp value. PCP is really undervalued atm, so a wider base of investors may improve market perception.
It seems to be the Australian "dis interest" in Diamonds etc that have forced their hand to go os to create ways to grow the company.
Just a few observations.
cb25
PCP Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
