In February, PBG was selling for 15-17c for two weeks.Its total capitalization was less than a $100 million, a far cry of what it used to be, $2.5 billion. It's crime, a depressed stock market, high debts and a share broker called it "non investment grade"
Before, that, it's total borrowing was only one third of its capitalization, so debts level was reasonable. When its SP dropped, probably more due to short selling or margin lending liquidation (I am only guessing), nobody wants to have a bar of it.
PBG owns some iconic brands, such as bonds, berlei, king gees, sheridan etc.Its business model was to buy these brands and have them produced cheaply overseas and made a profit.The business has to rely on a fair bit of loans to buy these brands and as the margin is good, to be able to service the loans and to repay them over time.The textile industry business works on low margins overall and depend on leverage to improve its return on capital.With basic essential items and good quality,a good brand will earn it a slightly bigger profit to service its loan. The decision to have its manufacturing overseas based and probably certain degree of warehousing tends to lower the overall costs. It was reported that a savings was about $150million per annum, which was 1.5 times its total capitalization. The market has improved and the stomach for risk has increased, stock brokers are revisiting PBG again. Now, several brokers are starting to recommend PBG as a buy.Nothing much has changed with the company, except it has a leaner and more hungry look. The debts are still there,its margin probably has improved due to 100% overseas sourcing. If that is the case, it has a better operation than it was when it was worth $2.5 billion then. Will it ever recover and will its SP come back to what it was before.Many fund managers, if they haven't sold the shares off when it was coming down, have a chance of recovering some of their losses. New entrants will make a handsome profit if they bought them cheap.It is a case of whether the buyers of PBG are fools, or the SP is very under value. I traded PBG when it was $2-$3. I never held any till last february when I thought some again because I was willing to trade it at $2-$3, surely it deserves to have some of my money for old times sake.
peterloh
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
PBG is an importer. The currency has improved from 65c to the current 74c in exchange rate has improved its buying power by a reduction of 20% in goods purchased.
Quote from air news is also encouraging.
" Retail sales have come in better-than-expected – they grew 2.2% in March and 1% for the quarter. Economists had predicted a rise of 0.5% for the month and 0.8% for the quarter.
Trade surplus has also come in better than predicted – it shot out to $2.50bn, the market expected $1.75bn "
Now for the TA aspects, the all ords was down over 28 points yesterday but PBG was up 1.5c. Currently PBG is up 5% as against the XAO of 2%.
The next resistance level for PBG is $1.15. The question is, will it get there? When will it get there? When it gets there, will it go on? The BULL climbs a wall of worries.
PBG was the best performer in "retail" yesterday and also the best performer in the last couple of months in retail.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Capital raising at 22.5% discount at 3 for 4 rights issue at 60c each. Institutions fully subscribed and retail issues fully underwritten will help reduce debts to 2.6 against 3.2 previously.Balance sheet will be strengthen. It looks like this one is on road to recovery. Other positive factors are strengthening ozzie $, manufacturing fully relocated and to a low cost base, margin increase, focusing on fewer but more profitable products.Negatives are, shareholding of existing shareholders have been diluted for the sake of stability and peace of mind.It is likely that the SP will continue to rise from here towards the next resistance level which is $1.15c according to the charts.With a capital rising, the risk of this investment will be reduced.I shall be participating in the rights issue.So far, this one is going my way. Caveat emptor for traders of PBG.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Below is the chart for PBG, I can see big volume going through today.The last time it did this, it was about 2 weeks ago, the price went up from 50c to today's price of 82c approximately.Do you see any frag here?
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
On the 4th May, it broke through a flagpole. What does it mean? Can you please share your knowledge here?
cheers
peter
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
hi peter, i am trying to learn the ropes so not sure how valuable my opinion is but the flags i was talking about are below. the data is a few days old so i wasnt sure what happened to the charts today...breakout on high volume is generally a bullish sign from my limited readings? based on ur chart there seems to be a spinning top, now does that also mean it will reverse?
The above is the 3 months daily chart which show a break out from the pennant. I agree with you it indicates bullishness and confirmed by the volume traded.
The weekly chart also shows a flagpole and a flag formation. Please note the bigger volume of PBG in the last 3 months which is way above the previous quarters.
You hold any PBG shares?
cheers,
Peter
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
It looks like PBG has come back to close the gap and returned to the support level at close. The institution placement has closed fully subscribed and retail should do the same in the next 2 weeks.There seems to be quite a bit of covered "shorts" reported in the last 2 days.The stock finished with dojis in the last 2 days, and tomorrow look like a reversal coming up and we should expect it to reach the resistant level again real soon.The PBG institution presentation would have been fairly attractive for so much institution money to get on board.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Just to fill in some details that haven't been covered in the previous posts. You will be able to verify the following if you study the company reports that are readily available.
June 08 Annual Earnings growth figure: 10.05% June 09 Forecast Earnings growth figures: -12.9% June 10 Forecast Earnings growth figures: -38.25%
The forecast figures are based on the analysis of 11 research companies.
I could provide a lot of other fundamental information that showed how poorly the company had been run for a number of years by management which is why they got themselves into the trouble that they ended up with however I wouldn't want the facts to spoil a good story. It's a lot easier to blame it on the hedge funds and other nasty people.
The company is attempting to take some of the steps that are required to get their heads above water however it still remains to be seen how successful they will be.
There were a lot of people who also invested in tech companies before the tech crash in 2000 which also had poor or no earnings and lots of promise too. Fortunately for those companies there were people who were willing to invest on a promise rather than on past performance of bad management. In the end though it was the investors who lost out big time when the promises didn't match the realities.
"...if one tortures a dataset long enough, it will confess to anything!"
peter loh/mook and others, In all this Rights Issuing and Institutional Placing,has the Company said anything about Not Being Able To Export Their Machinery?
You are aware of this Fundamental Issue? That PBG received Hundreds of Million$$ of Taxpayer Money to retool their Manufacturing Plants.It was a Subsidy to keep the Jobs in Australia and "Left Wing" Thinking is that the Government owns or at least has some Legal Stake in these Machines or at least the Tax Payer has a "Right" to stop any export of these Machines.
Now I realise that d'Wharfies are now considered "Irrelevant" to Big Business types like the Venture Capitalist Floated Pacific Brands of 'Icons" as seen on Pat Rafters BUTT!!
but down in WorkersVille,PBG has skid marks,is seen as a Mere Sweat Shop pulling a swifty,half smart play.There is particular displeasure that Female,Immigrant,Workers have been done over by PBG Management.
So what? Well,these Iconic Brands won't go over so well in the Future Market.The Boycott/Black Ban will be applied.
Most importantly perhaps to Current Holders is the distinct possibility that you'll Open ya Newspaper one Morning SOON and find a Court Order has been applied stopping Export of PBG's Fixed Assets ie The Machines won't be installed for the OS Labour to churn out PBG wares.A 10am Panic DOWN.
Far Fetched? Not worthy of Consideration in making your Investment Decisions? Ha Ha Ha the Joke may be on YOU!!
Anyway,some historical irrelevances- Times Past a Mother's Sewing Machine could NOT be seized by the Baliffs.Sewing along with Laundry were considered the only Socially Acceptable Occupations for deserted wives etc.The Sewing Machine,those treadle ones by Singer etc,were NEVER to be taken from a woman for any reason legal[divorce settlements et al]otherwise women may be "tempted" into d'Dark Arts!!
Anyway,also in the 1960's Singer etc Sewing Machines were gathered up by the Churches for export to PNG,Fiji etc.No Power Places that had to be clothed for Missionary Zeal Reasons.I like to think that they were used to manufacture those Fab,Garish Hawaiian Shirts.You know the ones with bare breasted Hula Dancers,Palm Trees,Speed Boats,Water Skiers even Fin Cars. Oh any Company that was gunner Bring such Wonders Back would get my Investment BUT I don't think PBG has the nouse for that.
Anyway,PBG is a STINKER that deserves not to be Wanted. High Risk of Karma catching up.AVOID.
Thank you for your contributions, which I have taken on board. I am sure there are a few more that also happened to have bought PBG above $2 and also happened to be unhappy with their investment.I have researched the material on PBG and also noted that CBA has been reducing their holding in this company.Judging by the tone of its critic, now I understand the reason for it not being loved.
Just for the benefit of the readers here I have chosen to ignore some of the research material when I invested in this company and elected it as my entry in the long term competition in IC.For traders that think that PBG has no prospect, it is a great opportunity for them to sell short in this company like many has done to make themselves a lot of money.When I look at the stock exchange report they are already some people doing it.
The company is currently having a rights issue, 3 for 4 shares and a placement to institutions at 60c each. The rights issue and the institution placement is being fully underwritten by UBS. I do expect when the rights issue was announced, that there would be a pull back in the SP. Instead PBG shares went up 15% and was the best performer the week before, declared in the ABC on Alan Kohler's Sunday Business Report, the week before.
My purchase price was average 35c and I sold them all at over 80c. With many holders selling their holdings to take up their rights, I thought the SP of PBG would go down.I am surprise by the strength of the SP of PBG.Having sold all my holdings, it is my intention to take up the rights issue of 60c each. I have given my explanation for my selection of the share.I am open minded whether I should keep PBG for the short, medium or long term. So far, PBG has not let me down, and the chart of PBG has gone the way I wanted it to be.
I do not know whether my decision is right or wrong.It has done the right thing by me so far. I know, like I said, there are many people that did not think PBG will survive. For these people , they have the chance to short this share and made themselves a lot of money by betting on their belief.
PBG is currently trading at the high 70s and seems to be consolidating. The Bollinger Bands of PBG are tightening, which indicate that the SP of PBG will break out. I do not know the direction, but if I have to make a guess, it may go up if it follows its recent direction.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
I think that you may be misinterpreting the intent of my previous post. We both know that company stock prices can move quite independently of fundamentals for long periods of time. Look how long the tech boom lasted before being revealed as the sham that it was at the time. Yes, in the fullness of time the tech story was viable but it needed time to come to fruition and there were many failed companies that brought much pain to naive investors caught up in the euphoria of the time.
Poor fundamentals do not mean that stock prices are destined to fall in the short term any more than strong fundamentals mean that stock prices are destined to climb in the short term. At times, stock prices and fundamentals are totally out of synch. Good traders can take advantage of this anomaly because they get in and ride the wave of hope and get out before reality sets in.
PBG has painted a potential future based on steps that they 'hope to take' and plans that they 'hope to set in concrete'. PBG has taken some of the steps and need to take many more before their plans are fully executed. It is one thing to have a plan to do something and something entirely different to execute that plan. To say that nothing had changed in the company but that they were a leaner and meaner company now was a completely misleading statement which implied that they had already fully executed their plans.
The intent of my post was to provide additional information for potential investors to take into account of as your original post painted a rather bright picture that did not truly reflect the complete story and hence may have misled some inexperienced investors to think that they were betting on a 'sure thing' which PBG from a fundamentals perspective is definitely not. In spite of past plans, management had overseen a dramatic fall in earnings thus turning it into a loss making venture. That is the reality of management's past performance. They still have to prove that they can run a profitable business in the future.
If people make an investment then they should be given as much information as possible so that they can make a truly informed decision. To paint a totally rosy picture and with hold relevant information is not helping investors.
"...if one tortures a dataset long enough, it will confess to anything!"
Your contributions are cleared for all to see. Anyone who intends to invest in PBG need to do their own research or consult their own financial adviser as to their own situation. As with all traders,investors, they are people who may be gullible who sometimes are being sold a story.I for one believe there is hope yet. I could be wrong, but so far, as from my holding, whether it is sentiment, or any other reasons, my trade has been justified. There is no need for me to change my stance to another where I am unsure of. I thank you for your good intention and will pay particular to what you have said and be vigilant with what I do.
Below is a summation of a quote from my initial post.
" New entrants will make a handsome profit if they bought them cheap.It is a case of whether the buyers of PBG are fools, or the SP is very under value. I traded PBG when it was $2-$3. I never held any till last february when I bought some again because I was willing to trade it at $2-$3, surely it deserves to have some of my money for old times sake. "
I do not know what will be the ultimate share price of PBG will be in a week, month or year's time. Caveat emptor, and DYOR.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
The thread suggested an undervalue share when it was first posted, one that could have come off as a speculative trade.I did not have anything on this one, but would have been glad if I have traded it on the break out.I have seen picks that came off worst.Considering what PBG had to face, an enormous task, I am surprise by the resilience of its share price, this time around.
The ozzie $ has gone up another 10% against the US $. Importers should be doing well. Likewise I can see PBG is retesting its previous high of 85c yesterday. If it breaks through from here, the next resistance level is $1.20.
Hi Rudy, PBG good break out today. Yesterday PBG broke out and came back to retest the support level.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Just had a quick look at the longer term chart of PBG. It looks like this one is about to take off, anytime now. The next stop is $1.20, a couple of weeks time? This is a bold forecast, but it is not out of the question. I do not know the reason for the certain change in attitude of some of the brokers already. It looks like this share is being accumulated at the moment. There is a lot of profit taking going on currently, but surprisingly, they all have been absorbed. Not only that, the buyers came back asking for more, even at a higher price.I shall be watching this one closely.
I notice PBG retraced to 85c again today which you could take as a bullish sign. I very nearly bought yesterday but stopped at the last minute when I realised that those shareholders who partook of the offer @ 60c can sell from Monday and take a quick 30% profit. My feeling is that there will be quite a few who will be tempted to take the cash so I'll see how it goes Monday/Tuesday. What do you think?
I happened to have bought quite a few PBG at a very early stage and kept on buying for some time. Still they average about 40c. I sold the whole lot at around 80c or a bit more, like many others to have the cash to take up the rights.I do not intend to sell these newly acquired shares so soon as I don't have any more PBG except these. I am hanging on to them as the chart looks exceptionally good and the fundamentals have improved. I nearly fell over when I heard brokers on SKY BUSINESS actually recommended PBG as a good "buy" when being asked. Also I have received a few brokers email which have a accumulation or buy on it.
I guess they may be some profit taking next week, and if the insider information for bankers and others are that good, they will all been absorbed without problem. The accumulation has already started some time ago and I am not sure yet whether there is any distribution taking place at the moment as the trend is still strong.
If you want to trade it, baysider, always have a stop loss in place.
I am surprised to receive this report, that PBG have more institutions support more than anything else.
Below is Pacific Brands’ 20 largest registered shareholders Shareholder Number of shares % of total issued capital 1 JP Morgan Nominees Australia Limited 193,646,836 20.84 2 HSBC Custody Nominees 113,131,735 15.17 3 National Nominees Limited 108,815,343 11.71 4 Citicorp Nominees Pty Limited 57,018,929 6.14 5 ANZ Nominees Limited <cash> 30,874,371 3.32 6 Cogent Nominees Pty Limited 15,913,309 1.71 7 RBC Dexia Investor Services Australia Nominees Pty Limited <pipooled> 11,250,919 1.21 8 FJP Pty Ltd <palazzo> 8,125,000 0.87 9 UBS Nominees Pty Ltd 7,955,708 0.86 10 HSBC Custody Nominees (Australia) Limited – A/C 2 6,222,897 0.67 11 Citigroup Nominees Pty Limited <cfs> 6,011,236 0.65 12 Queensland Investment Corporation 5,952,116 0.64 13 RBC Dexia Investor Services Australia Nominees Pty Limited <bkcust> 5,212,124 0.56 14 Bond Street Custodians Limited <Macquarie Smaller Co’s A/C> 4,858,635 0.52 15 Australian Reward Investment Alliance 4,464,002 0.48 16 RBC Dexia Investor Services Australia Nominees Pty Limited <piic> 4,383,866 0.47 17 Citicorp Nominees Pty Limited <CFSIL CFS WS Small Comp A/C> 3,804,629 0.41 18 ANZ Nominees Limited <SL Cash Income A/C> 3,745,390 0.40 19 Vivnat (Curtin) Pty Ltd 3,582,000 0.39 20 Citicorp Nominees Pty Limited <CFS Future leaders Fund A/C> 3,500,000 0.38 20 largest registered shareholders 598,469,045 64.40 Total issued capital 929,294,088 100.00
20 shareholders holding 64% all are institutions.Together with non substantial holdings by other institutions, retail shareholders have a smaller percentage currently.
cheers,
Peter
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
PBG has held up really well at the 80c level for 31 trading days. It now seems it's the stock that refuses to go down! I also note it's crossed it's 200 day average for good measure. Any views on a catalyst for takeoff?
Hi baysider, my intention was not to post till the end of the month to have a better look at the whole picture.
There are several issues facing PBG at the moment. The fact that it stood up so well, is an indication of the support it is having.I am not absolutely sure but like to have an educated guess. PBG is probably absorbing some tax loss selling and at the same time some profit taking from the short term traders from the right issues. From the equivolume chart, I can assumed big money is coming into this one to give support and these are mainly institutions' money.These people can be patient. I think the SP of PBG will be triggered by some announcement by the company.The composition of the 20 biggest shareholders consisting of 64% of the holding of the company support my claim that this company is dominated by institution money, not so much by the mums and dads as someone in the forum claims. The reporting season would be awful, but I think this has been taken into account in the share prices.I think PBG's management has been complacent in the past, and nothing like a threat of recession and a liquidity to wake it up from its slumber.They have good iconic brands, and the people who encouraged them to borrow heavily were also the ones that threatened them the most to put it's house in order. The increase in capital which is a dilution of capital also acted to strength its balance sheet. I have never seen PBG in a better position as now, with cost reduction and increasing efficiency. I do not think it is rocket science and do not think there is much danger in things going wrong with the relocation and outsourcing of manufacturing. I have a rather large holding of PBG but sold everything out to take on an even bigger holding.Initially I intended to sell half and take profit but since then has changed my mind to sit on them a bit longer. Hopefully with the end of profit taking and from tax loss selling, institutions will rerate this one to what it should be, not to its premium level but at least 50% of that, taking into account of capital dilution.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
After all the tax loss selling, and profit taking in the last few weeks, it should be smooth sailing from here. Retail data should be good and about .05% to be reported tomorrow or better.Holders of PBG should forward to a good week.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Is it sixth time lucky for PBG?; that is the number of times it has been trying to break out of it's recent high. There is a bit of volume in it today.The Bollinger bands are tightening and it looks like it wants to take off. If it does not breakout, it is still ranging.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
The retail figures should be out today. The ozzie $ has climbed from a low of 65c to currently 80c against the US. PBG's business is volume trade and stand to benefit more than any other retailers.David Jones has reported an expectation of about 10% in its profitability.Do you have any idea of the retail figures, reported? Big volume went through yesterday at an opening price of 5% increase. Someone has been accumulating PBG at this level.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
From AAP news quoted. " Official data released on Wednesday showed shoppers spent a record $19.6 billion in May, a 1.0 per cent seasonally-adjusted increase over April.
Economists' forecasts had centred on a 0.5 per cent increase."
Judging by its inclination to report, PBG may take a conservative and prudent approach, so as not to get investors hopes up.Nowadays, management can get access to management report at very short notices. I remembered in the 70s, my only access to information was through the teletext, that was besides the phone, where I got my management reports.I could get my reports daily, on production, sales and cash flows plus orders on hand.Nowadays, all these report can be accessed from the computer easily.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
I am not that far fetched or crazy after all. They are others that subscribed to the same views with proven track record.I find some similarities in the approach though.I find it comforting.I do not put myself in a class like David on share selections, but perhaps occasionally got it right as I have to put my own money in it.
Although the SP of MGX and PBG are confirmation, themselves.
Here are some abstracts from the Eureka Report.
"David Paradice, one of Australias best-known small-cap experts, manages about $860 million in companies outside the ASX 100. His expertise is in selecting some of the most beaten up, downtrodden and downright ugly stocks to add to his portfolio."
"Today he lists Platinum Asset Management, Mount Gibson Iron and Pacific Brands as his small-cap standouts and explains why he believes they have been priced incorrectly."
"he remains a true believer in discounted cash flow as does Warren Buffett. But he has since done an about-turn on resource stocks and singled out iron ore junior Mount Gibson for special attention."
" At the start of the year about 36% of the index was resources and as things were just being carted out, we decided we would move a bit into that area.
Now Mount Gibson had fallen from $3.50 down to about 90"-odd. But the volume of iron ore that it's selling has been locked in and the price has been locked in, so theres not a great deal of risk because the earnings of the company are reasonably easy to forecast. So when [Mount Gibson] hit 4050" we started buying it, based on what we know about the business; the stock is about 90" now. Based on the certainty of the production and the near certainty of the price, we think the stock looks cheap."
"Pacific Brands was one of those companies where we kind of felt that it had to raise money and we thought it was a good opportunity to buy that stock. Again, youve had huge P/E contractions and youve had big earnings contractions and youve got big debt numbers. The reduced earnings forecasts contribute to this meltdown in the share price, which creates a downdraft that stocks like Pacific Brands get caught up in.
They raised $253 million and we had an existing position and then we topped up again. The stock itself is worth over $1 (its trading at about 88" at the moment) and its a stock which, although not fantastic quality, is just too cheap. Fair value could be $1.201.50. Its a another good example of the P/E contraction where you go from paying four times in a bear market to paying 10 times in a bull market. Thats a 150% increase in the price."
Compared with a $3 price before, PBG looks really cheap.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
PBG will still be around for a long time yet. The current price of below $1 won't be around for long, once the realisation sets in, the company is not going to get bust.It is a company that sells basic iconic brands and good quality at that. It is not expensive for good quality and recognisable brands.It will never be a great company depending on how one looks at it. After the lesson of the past year, it may still be a reliable company with good reliable dividends. It proclaims, it will reduce the amount of pay out in dividends and keep a bigger cut of the profit, thus increasing its reserves for a raining day, a prudent way of managing the company.
I have not sold out yet, but I have been accused of bottom picking unbiasedly and without a reasonable basis when I selected this one as very undervalue. Well, so far, this supposed irresponsible biased selection has a modest 200% realised return from the initial investment and rights issue.
Sometimes, it is difficult to argue with someone who had just burned a whole in the pocket from the same share. One, the person regarded it as a great company then with dividends, to see the world closed down all around.It is also a time when this person turned irrational. Now the same company was being accused of ripping off a few hundred million dollars from the governmemt.The capitalisation of the company was not even $100 million then, so the total sums were more like a few hundred thousand $ for a few sewing machines. It was also alleged that the company ripped off from the mums and dads in a big way, when finally the disclosure from the company of its biggest shareholdings show that the 20 largest shareholders were all fund managers that held 64% of the company shares. They were also many other institution investors in the company that were not in the top 20 companies. I thought it is about time that I set this record straight. I am not a biased holder of PBG as when I think that the share is fully price, I will jump off and look around for something else.The sector, the economy is constantly changing, so it is good to have an open mind. Meanwhile, there is still juice in this orange and I am still keeping a fair few. I do not think that the present management will take up too many risk and not be careful or prudent in what ever they do.I shall be looking forward to hear how they fare, anything think that is not being conservative will be frown on, considering where they were before.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
In 5 minutes, I sum up the company, and decided that I had to sell all my PBG shares.It took me about 10 minutes to do the job.
Now I know the reason that the share went down to 12c as everything that was done by management throughly destroyed the company's good assets. If the facts were known then, I wouldn't have come anywhere near it.
In the Sons of Gwalia story,the company had everything going for it, but lost hundreds of millions.Many new shareholders were deceived into buying their shares. This is also the first time where shareholders were being ranked as creditors in the distribution of the liquidated assets.
It is as good as it gets for PBG and yet management could not make money but instead lost badly. What happens when the ozzie currencies are not as strong anymore? What else have not been disclosed? Now, I know the reason, for the CFO to be in hot water. Who else is responsible? The board is also answerable.I am afraid there are still a lot of unanswered question.
I do not regret having made the decision to sell. By a twist of faith, I did well from this trade.
Do you regret in selling off your PBG now?
A day later after I have posted my decision to sell PBG, here are some of the quotes which I find interesting.
"They are out of the Money $45m on their FX hedges, that is after tax! My guess is their CFO is in hot water over that one, ever heard of Options!! There is still pain to come on this one!"
"The big mistake they made was to hedge against the dollar so we have completely missed out on the huge increase in $ value This would have had a massive effect on their figures!!! The big question is does anyone know how long they are locked in on this stupid hedgeing decision??? Until we can take advantage of the high aus$ the shares will get hammered till May/June next year Someone should get a good kick up you know where!! "
"The uncertainty and associated risk re currency and hedging scared me too. Great brands and they should eventually pull through but not in my required timeframe. I’m happy with 45% profit over two months. Will keep this cash on the sidelines for the next couple of weeks...until another retail opportunity appears."
"Overall, it's not a terrible result, there is some light at the end of the tunnel, but there is likely to be more pain before things get better. I believe the 1st half report in 2010 will be even worse, and will drive the share price lower again. I will be watching closely, and will be interested if the price is driven down mid next year, as it looks likely there will be an improvement in business conditions for PBG from 2nd Half of next year onwards."
PS: Quotes are from some of the posters in HC.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
The 5 minutes was after the company's annual report.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
I was proven wrong on PBG, but corrected my mistake by buying back fortunately about 10c lower than my selling price. The saying do not jump off a winning trend is so correct. PBG has gone up 40c since.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Having sold PBG but accepting my error of judgement and bought back, thankfully with little damage. PBG has reached our target of $1.50, retraced to the support line, retested it and completed a dominant candle. It is now the rising 3 as in candlestick, and PBG looks likely to move up another nodge from here.The chart is looking good again. We should see PBG moving towards the $1.80 mark. After the annual report, I was asking some of the more experienced investors, the reason for the strong continuous support of PBG and was told it is still under value at this level.I hope they are right for my sake. I am contended to stick with PBG as long as the trend is intact. Caveat Emptor for new traders on PBG and dyor.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
PBG has broken out and reached our target of $1.50. It currently has returned to retest the $1.23 level. PBG is still in uptrend mode. PBG is mook's selection which has this month overtaken raggie in the long term competition. I have back the winner and and have added more chips into this one yesterday and today.The market is going to be volatile for the next 2 weeks, however with the strong ozzie currency, PBG should go towards $1.80 by end of the year, with Christmas getting near.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
With talk of the ozzie $ travelling towards parity against the US$ in January, even if there is only 20% unhedged import, things are looking interesting here.PBG has bounce off, after retesting support level.DYOR.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
The Bollinger Bands are tightening on PBG. With Christmas coming around, it could be the thing that triggers the breakout.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
On the weekly chart, PBG has a double bottom and also it is at this level, around $1.10 PBG has found support. In the daily chart, PBG looks like its MACD is turning up and turning positive. I have sold 50% of my holding a couple of weeks ago, it is timely to pick some of these up again at this level.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Hi Peter. It is not Pick on Peter Loh week - I swear. but I am disagreeing with you on this post also. I am speaking as a short term trader, I know you have a longer tern view than I. Nevertheless, I need to state the obvious here. PBG is sitting on support. This support MUST hold otherwise the H & S target @ 91 cents which coincides with the next support levels will be exerting a strong pull on the SP. So in my humble view, not a share to buy just now.
I've been on my cruise ship for 3 days and have not left my cabin yet. There are two doors in my cabin. One leads to the bathroom and the other has a sign on the door knob that says "Do not disturb".
Hi hershy, I am glad you were not around to tell me not to buy PBG around 40c, when the chart was not that good looking and not too many were impressed by it.(lol) I thought PBG has passed the danger level and had made some hard decisions.Like many of the resources stock I bought then, cheap, I choose to ignore the charts.To me it was a general thing affecting all companies, irrespective of whether they are good or bad.PBG was good value, like I think PBG is very good value at this level today. Infact the second half of 2010 financial year is going to be the half that will make or break PBG. The year 2009, is a year preparing for survival of the company, reducing cost and raising equity. To me I think $1.10 is near support and is value. I read a few fund managers report and many are of the opinion that PBG has been under value at this level and many have an overweight on PBG.I have sold half my PBG several weeks ago and I believe it is time for me to build up again. This doesn't mean that I don't value your opinion, hershy. You are one of those that I have a very high opinion as a very good chartist. I am basically an investor with a longer term view working mainly on business and economic cycle. The only difference between fund managers and I are that I take more risks as I try not to invest across all sectors. Thus I don't diversify for the sake of diversification. My way of reducing the risks are to take the chips off the table and reduce my exposure at review. Please continue to pass on your comments irrespective of whether you agree with me or not, sometimes you wake me up from my complacency.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
The market is volatile and it is not unlikely PBG will fall to 90c quickly and bounce back because of short selling and stop loss selling.I am of the view, PBG has bottom during the week and consolidate around the current level, before taking off during next week. The weakness in SP of PBG in the last 2 weeks were mainly due to Paradice selling down and the weakness in the Aussie $.Bank of America has been buying up PBG shares of late, thus the support. There is not much report from PBG, however many funds are in PBG and profit from the rise in price. The company is small by capitalization and any selling or buying by a fund will decide the direction of the company immediately.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
PBG recently came under the radar of AMP. The SP has just broken out under a long period of consolidation. The first target is $1.38 and next at $1.52 a recent high. The company is into the 2nd year of a 3 year strategy.The shareholding of PBG has a lot of institution which considered this company very under value, like QBE currently it used to be very heavily sold down. The difference is, PBG had a night mare of a year before that. I have a few of these bought at a fairly low price. I have also been accumulating a few of these recently.Pls DYOR before you trade this counter.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
Thank you David, I dared not venture into it went it was a 20c prospect, but happy to pay twice the amount for it initially and also willing to pay a higher price for it later on.
What is the difference when it was trading at $3 from now? Firstly the company shares have been diluted but not double. A substantial amount of goodwill has been written off (non cash flow area). Corporate debts have been reduced. The company is leaner, but has chosen a more humane approach by restructuring over 3 years instead of 1 year, which the company could have done. The Aussie $ has strength which is good for importers. The company has relocate manufacturing to a lower cost base and concentrate on higher margin areas and fewer brands. Sales revenue have been reduced but with higher profitability.
The reasons I am keeping PBG is because the benefits are still to be materialize. Fund managers are of the opinion that they are undervalue still. PBG has room for improvement. It is a target for the likes of Solomon Lew and others that can add value to it. Though many do not see it as a growth stock, the risk now is more on the upside than the downside. It is just my opinion, it may not be what I think it is.
------------------------------------------------- Disclaimer: Please note that comments made in this column is mainly for the interpretation of charts in technical analysis. It is not made in my professional capacity and should not be taken as advice.In my professional capacity I am only allowed to give advice on certain managed funds authorised by my license dealer.Any share discuss is for general interest and should not be relied on to make an investment decision.It is likely that I may own the shares that we discussed as a trade or as an investment. Please consult your stock broker or financial adviser in regard to your personal situation.
The views expressed here contain information derived from public available sources that has not been independently verified.No representation or warranty is made as to the accuracy, completeness or reliability of the information.Any forward looking information in this representation has been prepared on the basis of a number of assumptions which may prove to be incorrect.It should not be relied upon as a recommendation or forecast by the writer.
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