on the move again, page-12

Graham

The point I was making is that you need to draw a distinction between the newsprint market, incl those who supply printing equipment to it such as Manroland and the fine paper market.

With the decline in newspapers I would expect companies like Manroland would find it tough.

However PPX does not supply into this market. They are in the fine paper market and are attempting to diversify into other linked more profitable areas. You may be right in that photocopy paper is somewhat of a commodity but if the PPX management get their act together there is no reason why PPX cannot prosper. If they do both PPX and PXUPA will do well.

I have recently taken a punt on PPX and am aware of the risks.

Your bitterness towards PPX would be better focussed against new issues of products like PXUPA which do not require the issuer to pay interest. I certainly am wary of them.

On the issue of averaging down raised by magix I agree it is usually not a good idea to average down in a declining stock while trading. However if are taking a longer term view and believe the stock is bottoming then averaging down can work well. Look at RHG. Wish I had bought some more when they got to 8c. I bought in at 30.5c. Another one is AEU where I did average down at 15c after buying in at 23c. Now I am smiling.

On PPX the issue is simply one of whether you believe management can turn it round. If you think they will then averaging down is ok provided you do not put too much of your capital into it. That is a more basic rule than Gartmans.