Did anyone else listen in?I though Graham and his team put in a...

Did anyone else listen in?

I though Graham and his team put in a pretty good effort on behalf of PXUPA holders.

The speakers did a comprehensive analysis of PPX's current performance and identified some potential risks the company is exposed to.

They also confirmed that a 25% of PXUPA units could block any change.

I felt the analysis was a bit too negative including the prospects of PPX. For example the lack of foreign exchange hedging was seen as risk taking by PPX but no details of the currencies the debt and cash flows are in was included. I would have thought there was natural hedging here but am not across the details.

The emphasis of the webinar seemed to me was to present a claim for why PXUPA holders should get a healthier share of PPX than what others might assume from current share prices. I have no beef with that seeing PIGS represents PXUPA interests.

However I see the flaw in their argument is that they identify a need to recapitalize PPX but do not canvass the issue of raising fresh capital to pay back debt etc. After all simply swapping PXUPAs for new PPX shares does not solve PPX capital constraints other than paving the way for a quick sale which allows someone else to do it and reap the long term gains.

If PIGS are fair dinkum they need to address the CR issue, not just a possible share swap as the two must be related.

If Andrew Price and the team can turn PPX around, I for one would rather sit tight and wait a few more years to get more value from both my PPX and PXUPA holdings. If he cannot turn it around, it is hard to see anyone else coming in and giving shareholders a reasonable return in the short term.

I note the Board are buying at present they must think the shares are undervalued at present.