Hi Jamwolf, I quoted those figures to demonstrate the mountain...

Hi Jamwolf,
I quoted those figures to demonstrate the mountain that ppx ords[and to a lesser extent the hybrids] have to climb to get any return.
I remain to be convinced that the conversion of the hybrids at 250 gives sufficient weight to their place on the ladder.
Rerating will occur if management turn the underlying business around, and I would hope for a BBI type takeover when that happens.
Or if there is a sustainable profit [and no, I wouldn't really expect anything like the figures I quoted], the board , as managers for the ords, will have to come up with a takeover deal which takes out the hybrids[ideally one that gets 90% acceptance], if the ords are ever to get any dividends.
Other possibilities are to come up with a deal which changes the terms of the hybrids, which might include a combination of the some of the following,
markedly lowering the interest rate, perhaps with a move to a more vanilla type bond arrangement ,
decreasing the par value,
putting a term on repayment or conversion
a maximum conversion number

Lots of fun to be had with this one yet.

cheers

cheers