Geez your a rude bugger. I can understand why fundamentals might scare you, requires more intelect and effort than your capable of I suspect.
Just because I jump in doesn't mean I don't have rules or get out. I have dodged a few bullets in the REIT sector including the two you mentioned. We all play by our own rules and most try to enjoy the journey while respecting others. Vive la difference!
PPX is a punt, I thought that much was crystal in my post. FWIW I had cause to speak with management some time ago about the earnings covenant. I was informed there is no "predetermined" course of action in the advent of a breach but that the banks have a right to review the situation. I was also comfortable that the clause sort long term protection for the bank against worsening business conditions rather than sale puffed 08 profit, which they knew would be low. Profit from a asset sold is not really a profit and doesn't make the operation any more profitable or sustainable does it.
The bank chat is clearly a formality only IMO, though of course it creates fear and flight in this market. Common sense clearly indicates that the bank will not foreclose on the business but give it time to complete the sale process and decrease gearing while also letting the upgraded mill finally start making profit instead of consuming debt. PPX will be over sold, at some point the they will bounce and if all works out well they will be substantially higher than $1 early next year. I reiterate this is a short term play that the sale goes through for me.
goodluck holders
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