Hi Brentstory and drummnutt,Saw this in another forum and...

Hi Brentstory and drummnutt,

Saw this in another forum and quoting it here. I am interested to hear your comments. I am still keeping my PBG. PBG has hold up reasonably well after the rights issue and profit taking. It has retraced a bit on very light volume.I know drummnutt don't like PBG at this level, whereas I do not think it is likely to return to 40c. Do you think there is a chance that it will go up to $1.20 or $1.60 as reported in the quote below?

This is a quote from Eureka in its interview with David Paradice which had a substantial investment in PBG.

"Pacific Brands was one of those companies where we kind of felt that it had to raise money and we thought it was a good opportunity to buy that stock. Again, youve had huge P/E contractions and youve had big earnings contractions and youve got big debt numbers. The reduced earnings forecasts contribute to this meltdown in the share price, which creates a downdraft that stocks like Pacific Brands get caught up in.

They raised $253 million and we had an existing position and then we topped up again. The stock itself is worth over $1 (its trading at about 88" at the moment) and its a stock which, although not fantastic quality, is just too cheap. Fair value could be $1.201.50. Its a another good example of the P/E contraction where you go from paying four times in a bear market to paying 10 times in a bull market. Thats a 150% increase in the price."

You still think I should sell my PBG now and wait for it to drop to 40c or 60c to buy them back?