You're right about PXUPA being on the equity line of the balance...

You're right about PXUPA being on the equity line of the balance sheet, but the first $285mil of equity it attributed to PXUPA then anything that remains gets attributed to PPX (at the moment ~$70mil).

So the concept of buying $1mil onmarket and gaining $9mil of "value" is still true. But in reality buying onmarket of a fairly low volume/illiquid stock isn't sustainable. Try buying $1mil of PXUPA and how high would it push the sp up?

But the idea has merits.

Im sure with the vale of time and certainty, every man and his dog would jump at an offer of $80. Even original holders at $100 would cut and run. Invest the $80 and get your $100 back in no time.

Conversely, nobody of sound mind would accept any offers below $20. Just too unfair.

Now, where the majority of us differ in opinion is how long it will take to get money back without an early compromise and what each individual would accept.

Full conversion gains absolutely nothing. It doesnt create additional equity or breathing space. It doesn't make take over cheaper or easier as the buyer can just do the conversion themselves at $100. So it will not be addressed unless some savings are made.

Tensions will build because at the moment their is only an onmarket sale option which is unacceptable to most. I'd jump at $40. I can see people getting annoyed if a minority such as 25% block the majority and deny them a chance of getting something back soon than later.

If it was a 50% resolution then I guess you cop it on the chin.

Ideally, an onmarket buyback would help boost the sp so the difference between $10 now, a $40 offer 'soon', or $100 'eventually' will be less significant.

A buyback may push PXUPA above $30. Still a nice saving for PPX and a viable option for sellers.

But right now, this potential scrip offer is the only exit stratergy for most of us. Otherwise its limbo again.