price slide, page-139

Blues

>1) PPX recovers and wants to pay divis to PPX holders so PXU get paid before PPXs,

2) PPX gets taken over, so PXU get paid (cash or conversion), or

3) winding up event - so PXU get paid (whatever is left, likely much less than $100)before PPX's (like $0), or

4) Both PXU and PPX won't get paid.


How about 5)
PPX does turn around. Someone sees real value and offers a good price to buy out PPX and PXU gets paid out.

>Even if PPX starts to turn around, the "much unloved" tag on PPX will take a long time to go. I also expect instos won't show any support forPPX as they have long memories and no love (even wrath) for companies where they have incurred heavy losses.

New management or a later takeover and all this becomes fairly irrelevant.

>I recognise many PPX holders already have(potentially huge) losses and so have minimal left to lose.

Graham has been pushing this line which suggests somehow they should just roll over and let PXU get the lion share. It ignores the fact that a lot of PPX holders have bought at low prices with the expectation of a turn around. I suspect there are a lot of PXU holders in a similar position.

I consider it is too far too early for PPX holders to consider capitulation. We need to hear a lot more from management about survival prospects before we consider taking any low ball offer.