PBG 0.00% $1.15 pacific brands limited

a few quick calculations

  1. 348 Posts.
    Let's assume that you can average in at around 40c (currently 36.5c) for PBG and you buy 25,000 shares for $10,000 here's what you get:

    A dividend of 15% in the next 7 months, 100% fanked = $1500 in 7 months.
    Assuming that you earn between 75k - 150k per year, you will pay $150 tax on this amount for a net return of $1350! If you decide to hold, when all of this gloom-and-doom is over (which may be a while), dividends should go up and you stand to make a packet.

    Let's assume instead that you bought another stock with your $10,000 and relied on capital gains of share price over the same 7 months, your stock price would have to increase by 21% (in 7 months) to break even with this amount (on paper). Sounds ok, HOWEVER, if PBG share price also climbs (which it almost certainly will) you will need to make HUGE profits on you SP of chosen stock.

    The above example assumes the following; PBG will remain profitable - I am willing to bet (much more than 10,000 shares) that they will. So to the very few (small volume) that are selling these things at 36c, I say a very warm "thanks for the free money"!
 
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Currently unlisted public company.

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