PGC would want to cut a deal pretty quickly to keep me happy. I'm finding this hard to digest.
I'm not very pleased about such a massive raising. In any sense, its huge.
I am very much in favour of companies who keep a handle on the number of shares on issue, and using cash flow to grow. Or do a raising to do a very good deal. PGC are hardly keeping a tight hold on the share base.
The market does not reward cash in the bank.
So with a weak market, a weak first half and a bucket load of new shares in new hands, PGC has a wall to climb. IMO they will need a good deal fast, or 70c will be the new tide mark.
Many companies conduct a raising in conjunction with a deal, so this strategy of raising a war chest is somewhat confronting.
Pie Funds will now be very comfortable at getting out IMO.
I'm just calling it as I see it.
I think am gunna give the new CEO a call in coming days. Will post what he says.
Gosouth
PGC Price at posting:
76.0¢ Sentiment: None Disclosure: Held
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