why is pwt going up??, page-4

Hi Fullguy,

It's hard to say, but I would have thought that the share price would have fallen. Perhaps, then, it could have something to do with DTU deciding not to exercise its pre-emptive rights, but rather to adopt a wait and see approach depending upon the nature /extent of the re-capitalisation (etc).

Currently, PWT is trading @6.7c, giving it a market capitalisation of $58m and not far off its recently stated net equity position (inclusive of $75m in preference capital), of $76m. This, however, still includes network assets of $180m. In the event of any further writedowns being required, then PWT could well be trading at a premium to its current net equity position.

Currently, PWT is valued close to the market capitalisation of SLX ($60m), @30% of the market capitalisation of HTA, and @70% of the market capitalisation of UEC.

With more network writedowns likely to be required, it is quite possible that PWT's net equity position will slip further in the next few months. If so, then @6.7c, PWT would be considered over-valued.

This then suggests that someone could well be building a vote-changing position (ie: an accumulation exercise to be used at the XGM). Maybe a spoiling tactic, but equally, perhaps an opportunistic tactic. But, one based on fundamentals, I do not think so.