price slide, page-57

Graham, I would think this is reason enough for PXU holders to give a little. Being stubborn will result in the worst case for everyone imo.

If they continue the pattern of :

(1) Dec 31. PaperlinX has a bad first half, but convinces itself that things will improve as losses are all abnormals. SP falls.

(2) Jun 30. PaperlinX has a bad second half, but convinces itself that things will improve as losses are all abnormals. SP falls.

(3) Go to #1.

Then PXU will need to wait until the plug is eventually pulled and equity wont be enough to fully pay them out. Lets say it takes 2years to get $60.

You gotta ask yourself what that 2years is worth and what you would be better of accepting now? Not to mention 2years would only be when PPX pull the plug or have the rug pulled out from under them. They would still need to formally apooint administrators or slowly dispose of assets. So it could be 12months on top of it before you see a cent.

$60 in 3years (no vote) versus $40 today(with your vote). I'd personally take $40. Obviously that offer isn't on the table but its still something holders need to be asking themselves. How much would I accept? And what is the alternative?

Ofcource you can group together and stop any PE offerings. That just forces company to attempt to trade out of the mess.

So instead of finding faults with the PPX business model, it would be better to find solutions. Are they salvageable? Should they slim down? Diversify? Cap raise?

Blue234, you find some great stocks. Ones that make you think. Interesting risk/reward equations. PXU at <$20 is worth a punt. Their is equity their as a buffer before you see less than 20c in the dollar.

You know from Beppa days that Lowy stepped in and got a better deal for holders. This current PXU offer is conditional and non-binding so market has writen it off. But its a bench mark that future 'serious' offers will better imo.

Remember the Dargie Death Spiral? I see a bit of that here with the PPX slide. Only not as swift because their isnt a covenent breach to force conversion and bring the house down. PPX can basically manage/time the conversion.