Been watching some other more volatile stocks. No I am not worried about a $5m mechanical or other disaster. It has been my impression that they have been maintaining the plant better than in the past and with the stock being a bit high it actually seems that the stock is a bit of a buffer in certain areas.
My biggest worry is the debt and turning around the burgeoning overburden stock.
I rate the new chairman and think that he is a straight shooter. I note he keeps adding to his investment. I respect him enough to believe that whatever the problems he will get it right. The only concern for me is what is the bottom.
They have made some bad decisions - They limited the rights issue over subscription @ 70c. Oh what they may give to have that decision again. If I were them I would go out there to raise another 20m @ 40 cents or issue another 50 million shares.
The big risk for me is the LCE threat. I dont rate them at all but they want more airspace and failed last year to get elected to the board. If they took over I would sell. Thats a limiting factor as their objectives are only aligned to themselves IMO. I now own a few - Just to be on the register in fact.
This could be a very good business in 3 years if they resolve the issues.
PSH Price at posting:
46.0¢ Sentiment: None Disclosure: Held
