"@madamswer - Sanjay has done nothing with this business to give...

"@madamswer - Sanjay has done nothing with this business to give him any grounds of credibility.
He has demonstrated no ability to pass input costs on to customers, he failed at selling the contract manufacturing business before and the PGH share price is close enough to all time lows. Sure - input costs will(and are dropping) but his performance as CEO has been terrible for shareholders. "

@Lara,

I think one needs to draw a distinction between lousy management and lousy industry.

Packaging is not a great industry: it is capital intensive, largely commoditised, it's CoGS are highly variable and outside of the industry's control, and packaging companies have limited pricing power.

Look across the board at other packaging companies: their financial performances have also been adversely impacted (what has saved PGH's Australian-listed peers is their international operations).

So I think you could have put the best guys available at the helm of PGH for the past 12 to 18 months, and the outcome would not have been greatly different.

Sure, I think they bit off a bit more than they are able to chew in terms of capital commitments, which has left the balance sheet looking a bit taut at the moment, but its a highly cash generative business and the balance sheet will slacken relatively quickly.

(In fact, it is the dual appeal of that financial leverage, as well as the operating leverage, which forms the investment attraction.)

/