is pxupa a buy?, page-33

PPX has said they can pay debt when it becomes due. PXUPA is debt- retail holder debt- and they should pay. These hybrids/preference shares can be tough, but really, they were funds borrowed from the company, and it astounds me when companies pay bank debt but not retail debt, because for hybrids, there is no punishment like a bank covenant, but the hybrid gets punished in a reduction of capital, if the company doesn't pay out.

There's an offer of $38 for the hybrid this morning, a bit of a rise on yesterdayy's close. It will be a interesting watch to see if people climb in on anticipation or climb out on fear. It looks like one of those double or nothing propositions. It's also the cheapest of the hybrids right now, which means nothing, of course, if they don't pay.

Afex, good luck, mate- she might come good! :)