Ann: First Half Trading Update, page-6

Morrison6,

I hope you haven't lost too much money, but Pental being a microcap stock it is, in my opinion, a dangerous place to play. I'm surprised that it held up so well but I suspect that the majority of shares are held by directors, management and a few small cap fundies.

I have followed this stock since 2005 and held shares until last financial year when I bailed. I think management did a stellar job with the restructure and have worked their butts off to make this company a success. The thing that has always had me worried is the margin compression, it is very difficult, especially when dealing with the big supermarkets, to gain those margins back. Every time I go into a supermarket I look at Pental's range and price and I still support the company by buying their products. It seems that their products are always on special and that the big boys give them very little shelf space, apart from the white king range.

Watching their Glycerine and speciality chemicals business get smashed a decade ago was very hard to take and some of that was out of management's control.
I will take no pleasure in being right with this stock and it would please me immensely to see Pental rise and become a raging success again.

I wish you luck with your future investing.