what's happening here?, page-7

"I thought when the price plummeted to $2 that the sellers would start drying up. PE of around 8 and I expect it to go lower when they announce an increase in dividends"

Sonpa the PE of 8 is on historical earnings, now the market is NOT a librarian, it doesnt concentrate on the past, instead to looks to the future.
So looking at a PE of 8 is a potential value trap.

PRG management has already stated that 1st QTR trading has highlighted pressure on earnings in Property Services and Management. They are relying on the 2nd half of PRG's financial year for a turnaround in earnings in order to meet guidance. In the 1st Qtr PRG highlights that BOTH volumes and margins are deteriorating. Thats a double whammy.

Now what happens if (and this is only if, i dont have access to any sensitive information) 2nd QTR trading is also subdued, this could mean that the expected turnaround is being pushed further into the future. NOT GOOD NEWS.

We know the banking sector is still squeezing commercial property plays, so the commercial sector is trying to squeeze every drop of marginal profit, in this environment this means placing a very strong focus on cost control. Not a good environment for PRG.

I exited the 2nd half of my position at $1.93 last week, and will sit on the sidelines until a confirmed uptick in earnings is on the cards.

For those looking at it from a yld perspective i also suggest caution. Look at the margins in this business. There is not alot of fat in the margins to cope with pricing pressure, especially with the fixed cost base of the business.

Again i also suggest looking at directors transactions.
We dont see any directors buying?????? even though the price is at 10 year lows. So ask yourself why?????