PEB 1.16% 8.5¢ pacific edge limited ordinary shares

Was an interesting article in the NBR in NZ regarding PEB....

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    Was an interesting article in the NBR in NZ regarding PEB. Generally it was asking why PEB would try and throw the ASX under the bus, considering the filings of capital generally come with listing.

    PEB had noting in those filing that capital of A$70M was being sought at $1.20. That’s a lot of working capital - and it was proposed to be fully underwritten.

    Keep in mind that ANZ paid $22m at a premium and got in at ~$0.65.

    The author asked (and all these are my words) if that information was part of the filing - why did the management throw the ASX under the bus? Have they received an approach that would make a $70m placement uncomfortable (in other words a take over).

    Why would the board potentially dilute a purchase price by making a placement is my thinking.

    it also raised the point that Davie D is retiring and a replacement has not been found, and has been a large timeframe - which the author inferred would suit a prospective purchaser.

    a poster earlier asked about smoke?

    it certainly does seem like there may be some things to think about. Could a take over/acquisition be on the cards.

    I personally would not particularly enjoy is unless it’s at a significant premium to current SP and value. The addressable market is huge in my view - $3.5B has been thrown around.

    if PEB can secure 20% of this in 5 years time which is circa 700m at a PE ration of 5 (conservative) puts the SP north of $5. That’s what I’m here for. I want another NZ story like Xero.

    I want dividends!

    I appreciate that my list of demands can be seen as quite large, but it’s highly probably IMO. No matter how I look at this there is some very big upside here.

    we will know more by the end of the month when the listing should be taking place on the ASX.
 
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