let's get back to basics

Hi All,

I am compelled to make a contribution considering all the negative noise coming from our usual suspects, Graham, Socrates (the possible disgruntled employee who was wrong in more than half of his predictions and who therefore will no loner be posting here) and others.

We have a company that's turning over billions. Hugely profitable businesses exist in Canada, Australia, New Zealand and Asia. There's trouble in Europe, mainly Germany and the UK/ Netherlands, all of which are being taken care of by way of reducing costs and diversifying.

The losses displayed in these results were to be expected. The changes wrought by Price and the Board have not yet fully flowed through, however I am confident they will within the next fiscal cycle. Let's not forget how much the losses have been reduced by since last year's results which still reflected the damage done by the previous Board, Boon and his Bandits.

Price and the Board have done a remarkable job in this regard. The tide is clearly turning, and with profits expected next year (albeit small) this will see a huge turnaround in SP - my prediction is our current levels will not last for long.

As for the hybrids, I commend the Board - particularly the Chairman, who has clearly been working towards a resolution. A share swap would be the most fair and equitable in my opinion, and a 50/50 stake between the hybrids and ordinary holders. Let's not forget that the Board's priority lies with PPX, not PXUPA. The fact that they are working towards a joint solution with the hybrids illustrates how far this company has come since the Boon days.

I am quietly confident that this management - if it continues on the same path - will see this stock rise towards 20 - 30 c , subject to an affordable acquisition of the hybrids at a fair price. This is where negotiation will play a heavy role, and my advice would be that both sides are sensible and act in the best interests of the entire company by agreeing to a 50/50 share swap. It is reassuring also that Kaye as hybrid committee member has such extensive experience is mediation as an SC. This will undoubtedly help the two sides reach a solution.

Holding strong