Changed a few lines after speaking to our lovely moderator
From a traders perspective. Please see
Post #:37429835 for my trading history on PGC.
So you want to divorce PGC (
Post #:33596632) because the original investment thesis from 3 years ago no longer applies. In my opinion selling now would be a disaster. Luckily there is an exit point in the not too distant horizon. If you look at the chart below she might actually stumble on a golden cross in the next 3 or so months. You might want to avail of this high probability spike opportunity to cover some loss. Great entry point for a trader but also a great sell point for those who wants to get out.
Fundamentally speaking, If you are still of the idea that this is a good long term hold please read this -
Post #:36733525 There are far better quality companies out there at this point in time.
More importantly read this (
Post #:36748267 ) which sums up the issue with PGC which we see time and time again with this inorganic growth strategy which I will actually reiterate below:
M&A decisions and an ill-disciplined allocation of shareholder capital is the fastest way to impairments.
Not saying this has happened but I'm now saying that this has happened and a risk that we all take and most have now monetarily realised in buying in. At best PGC endures further SP value destruction in the short/medium term due to disappointing
forecasts results. Worse is failing to deliver long term and balance sheet repair becomes an overwhelming priority.
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