Hi Blues. You are correct about BBI not being worth 4c and being lucky to get the offer which capped it above the true value. And whilst PPX is different, the message PPX need to sell is that PPX can quickly be in BBI situation. Accept the offer now before you have no choice.
I'd be interested to know what equity Graham believes still exists for PXUPA holders and if he thinks that equity will erode further in coming quarters.
You are correct in you interpretation of my $40 prediction. And let's be honest, we cant trust current values. Writedowns are very possible. So a discount should apply. How much only the market can decide.
I partially agree with your argument about higher ratio for PXUPA and therefor slightly lower sp for PPX. More reward for PXUPA than PPX. But even at 20c it's abit over 3x current sp. And PXUPA goes from below $10 to above $40. So mare like around 4.5x - Maybe something around 2x for PPX and 6x for PXUPA is more equitable?
Guess it depends on the motivation for the offer. It a further cr is the end goal to reduce debt further then I think you need some meat left on the bone. If take over is the ultimate goal then you need to minimise shares on issue for the takeover to look attractive.
If it is purely to unlock value and have PPX and PXUPA trade close to NTA then it is more negotiable than the bove two scenarios. But I don't think management want any PXUPA holders to have too much power in the new PPX entity.
Right now PXUPA is in limbo. Same for PPX. I've been buying a few PXUPA because that limbo could be coming to an end now that PPX have officially decided to 'try' and address the PXUPA. But if voted down it will just go back to being in limbo for another few years, so I'll sell and re-enter later.
Yeah, I never expected to see a cent from the old Atlinta AETD assets. It was always just a longshot sweetner.
Pitty PXUPA wasn't secured against an actual asset. Would definately help in negotiations.
SRS Price at posting:
6.2¢ Sentiment: Hold Disclosure: Held
