I take WuGin will be shorting PBG come Monday and has posted accordingly. LOL. Sure I’d be comfortable with a healthy retrace back to say 90c before testing $1.20 but 30c is a ridiculous call. This GFC can’t linger forever however PBG will and as the recovery becomes more evident we are seeing this in their SP. Really, it’s that simple.
As Malay pointed out, in PBG’s case, it’s all about earnings and cash flow. They have an extra $256m to reduce existing debt and their next significant tranche is not due until March 2012 – we’ll be well into boom times again by then!
The market has indicated it’s comfortable with the further dilution and has had a good five weeks to dump since allotment.
Good luck to WuGin…might be safer shorting DJS.
PBG Price at posting:
$1.01 Sentiment: None Disclosure: Held
