Ann: First Half Trading Update, page-38

Don't disagree with anything said. It's an industry where the major source of competitive edge lies with those with economies of scale. This allows higher spending on promotion and marketing activity to further bolster brands. Pental is not well placed in this regard.

Pental's brands are worth something though I think, the company does have a bit of cash and is profitable, so is able to ride out the current conditions for a while. Question is whether the current pressures alleviate at some stage, and whether over time they can demonstrate progress on the international sales front. Conditions could also get worse too of course.

At current price, with an EV/EBITDA of 5-6, I will hold my small position and look to increase a bit if it goes to mid 30's.