To me the 27.5% seems to have primarily been based on "unobservable inputs" (note 11 in the june 2011 report).
The reports discussion in 2(d) and 3(j) may require consideration.
RE 2 (d) the Trust ultimately decided it was appropriate to continue to adopt the going concern basis for reporting. This would mean they also adopted in 2010 - so no change.
RE 3 (j) the Trust discussed various financial instruments / investment considerations. Also referred to 2(d). But nothing really grabs me as a major change to 2010 other than a reference to cash flows but there was no supporting analysis.NOTE: In MAy PPX projected an underlying loss for 2011 ~ $7 to $14 mill versus ~ $28 mill in 2010.
Summary
I would assess that the risks associated with PXU at June 2011 had not dramatically changed 2010 to 2011 and further, that they remained largely the same as those identified in the original 2007 PDS.
IMHO the 27.5% which deacreased PXU to $34 requires expansive justification from the Trust. NOTE: If it was 15% then PXU = $60, or 50% then PXU = $20. But without supporting evidence, why should it be less than $100 as per the PDS?
SRS Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held
