is pxupa a buy?, page-44

Hi Boomer - why should the hybrid holders ever take a haircut?

PPX has an NTA of circa 0.38 so there is adequate fat for a takeover and there are 4 shareholders with 49% of the FPOs.

Being optimistic, maybe the "mill free" PPX will thrive as a pure merchant, become profitable, continue to service hybrids & then resume dividends. Either way, FPOs & Hybrids prosper but to different degrees.

These basket cases eventually effect turnarounds by themselves, or have their problems resolved by others. With a relatively new MD experienced in paper & potentially a new chairman, time to be optimistic at these value levels.

Remember that PPX still has a real business.

Long PXUPA