I first bought PMP at 13c, which was pretty well the bottom, then sold them at 25c, which was a third of the way back to the top !
It’s not impossible that I could get them back at 13c again.
The problem is that they’ve really killed their earnings upside following the share merger with IPMG. The anticipated benefits of the merger haven’t come through due to continued volume and margin pressure. It’s a classic case of a 2+2 acquisition in a declining industry equalling 2.5 at best.
Meanwhile the debt has crept up because the cash exceptionals seem to be never ending.
Also, catalogues are not that big a part of their business, and in your 50c catalogue example it’s hard to see how PMP makes much money.
Anyway, that’s the bear case, at least for the time being, but you could just as easily be proved right.
PMP Price at posting:
23.0¢ Sentiment: None Disclosure: Not Held
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