jram, Would you prefer to only hear from supporters and boosters of the stock?
I don't hold any shares in this dog. I watch it out of interest. Its a bit like watching a slow motion train wreck, best done from outside. I would be more than happy to engage in logical conversation about PSH.
It is cash flow negative. An astute reader would have noticed in todays release that the CEO says expenditure is being resricted to sustenance.
In my view this means they are running down the plant condition in this capital intensive industry. The Osborne plant needs constant high expenditure to reline kilns, overhaul vessels and refurbish turbines.
Defering this expenditure is a akin to running down the stock. Its a temporary fix that must be remedied quite quickly to avoid a irretriviable maintenance backlog.
Even if they turned it slightly cash flow positive that cash would be wiped out in one minor breakdown.
Last week you could get out at over 70c, yesterday at over 60c, today at over 50c. If I had stock I would sell it. I doubt you will ever see another dividend.
Bacci
PSH Price at posting:
60.0¢ Sentiment: Sell Disclosure: Not Held
