As predicted PSH has hovered between 5 and 10c for some months now. The directors and staff have done a magnificent job holding the ship stable giving those wanting to exit a chance to get out with some money.
My expectation is that this phase is coming to an end. I expect they haven't been able to sell the quarry as that would need an offtake agreement from a credit worthy buyer. The patience of the banks must be coming to an end with the realisation that they won't get their money back.
The end of the financial year sees a record low share price around 5c, a market cap around $5M, debt around $100m and a strong AUD making the price of imported competition low.
The final blow will be the carbon tax, Penrice is a big polluter. It is very energy intensive. It is exactly the type of industry the government wants to close.
I doubt PSH will see Christmas in its current form.
Bacci
PSH Price at posting:
5.5¢ Sentiment: Sell Disclosure: Not Held
