I ran the calcs, if things stayed status-quo, PB will be paying interest on the debt at the current income level. There revenue and profit needs to increase. This is evident in the Dollar going down, and PB closing some AUS manufacturing. If they increase prices, and pricing broadly increase, then inflation goes up, interest rates go up, thus their increased income covers interest payments. Doing the share issue balances the favour to Shareholders, less debt, allows them the means to pay down debt. If things now stay status quo then PB will SP will increase as the market increases. They still need to account for the lower AUS, but that seems to be going ok. I see another share issue at around $1.60, if the profit cannot cover dividends above the Bank Interest rate. The SP will pay down debt to a level where dividends can be paid, with debt going down. By 2010-2011 they will start a share buyback as best utilisation of capital, or alterntively look at retail such as K-Mart.
I sold out of PB, just waiting to buy in again.
This is not advice, but general comment, do your own research.
- Forums
- ASX - By Stock
- PBG
- when 80c = $1.20
when 80c = $1.20, page-12
-
- There are more pages in this discussion • 30 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add PBG (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online