when 80c = $1.20, page-12

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.