details on why i'm negative on ppx, page-18

Austted

You are so wrong in Post #: 7542424

There are a number of issue above which I may address in the future, however the observation about ORBIS needs to be rebutted with hard facts.

I suspect that generalisations are often seen as fact on this forum. The people at ORBIS are smart folk, but have got caught on PPX and have no way out which I’ll demonstrate. This is why Orbis is bleating so much.

In this case they aren't "astute bottom feeders" but stranded whales, soon to die on the beach.

Justifying an argument by example of a winner like AEU then inferring a similar outcome for PPX is simply spurious when you consider the Orbis investment philosophy.

ORBIS first appeared on the PPX register as a substantial holder on July 15, 2008 with 23M shares. Its last transaction was on March 2, 2011 when it bought 6M shares bringing its holding to 111,432,010 shares (18.46%) at what I conservatively assess at an average of $0.793 or total investment of $88.4M to own PPX shares worth $9.8M at the close on 16 December.

My method of pricing purchases.

I used the close price for the date of change of interest on the Notice of Change of Interest; except for the notice of substantial shareholding. On July 15, 2008 PPX closed at $1.515; however this was just about an ALL TIME LOW. I generously used $2.00 for the first 23M shares; hence I say my figures are conservative.

Here is the dilemma faced by Orbis:

(1) It could never realise anything near $10M on market; and
(2) It cannot meaningfully average down, if it wanted to, when already holding 18.46%.

Its investment is totally illiquid and a permanent shareholding until rescued by a meteoric rise in price.

As at September 30, the Orbis investment was written down to less than $5.3M (< 5 cents per share) to reflect the reality of its situation - https://online.orbisfunds.com.au/p?_s=fkHvZND_kWjrgsMN&_k=wTND2i6uCzbo-B2O

Maybe this is worthy of consideration by the PPX bulls here. Maybe 5 cents is the real price.

Re PXUPA

Here Orbis delivers good news. On July 1, 2011 Orbis established the Orbis Opportunity Fund. This fund has invested in PXUPA, not PPX. So the astute are buying PXUPA, not PPX. I find that reassuring.

I don't mind being called as wrong, but please stick to reality.