I don't see why PPX needs to raise more capital. The company has...

I don't see why PPX needs to raise more capital. The company has low level of debt relative to equity, and is currently cashflow positive. And as long as it reduces the cost base (in order to match revenue decline) through staged business rationalisation, the surplus cashflow should be adequate to pay for the progressive rationalisation costs.

Even if it needed capital (which I don't believe it does), the current SP is too low to have any meaningful capital raising, notwithstanding the heavy dilution this will cause to the holdings of current shareholders which is not going to be acceptable to the biggest three shareholders, which currently hold well over 40% of the capital, and others.

And consolidation of sharres, just to spruik the SP, is rarely a good idea, as there is usually continual fall in SP after consolidation (there have been many examples of this, ELD being one of the glaring ones at present).

I think PPX needs to continue to rationalise its business but accelerate to the maximum pace the current cash flow can sustain. IMO the company will emerge stronger in FY12, and we'll start to see a turnaround in SP as the eurozone economic situation begins to stabilise, hopefully not in too distant future.