I think what MovingAverage is trying to say is that what your...

I think what MovingAverage is trying to say is that what your saying is true of wonderful businesses or even those making a profit. it doesnt matter if the share price departs from reality as the 'weighing machine' will bring it back at one point or another. In PBH case the 'voting machine' has voted SP down

the problem here is this picture -

if they keep making losses they will burn through their (at last count) $412m and need to come back to the well... and when they do if they share price is depressed it will limit how much capital they can raise (from instos and retail etc). for now the share price is merely a vote of confidence but its a huge negative when the day comes they need to raise $$$. however, none of this is new information as they same problem existed a few weeks ago at $2! but as MA says it can become self fulfilling as the SP declines so does the prospect of them being able to raise large amounts of money to continue BAU.

not to mention being kick out of major indexes like the ASX 300 and universe of potential investors gets smaller