let's get back to fundamentals

In the table below I have tried to show how cheap the Penrice shares are in terms of price/book compared with two years ago. Apologies for the blank lines below in front of the table. I have managed with great difficulty to produce a table but I haven't found a way of getting rid of the blank space as yet:

Penrice Soda revenues and staff
	June 08	June 09	Latest available
Net assets	48.1m	61.5m	91.1m
Schist	10.7m	17.5m	19.3m
Net assets minus schist	37.4m	44.0m	71.8m
Market capitalisation	60.1m	44.0m	32.0m

I agree with Joewolf and Bacci that the counting of Schist as an asset is questionable so I have removed it from the net assets as shown in the third column of figures. If they do get to sell some of the schist let's treat it as a bonus. It is the comparison of the net assets (minus schist) to the market capitalisation of the company that I want to draw attention to. In June 2008, investors were paying almost double the net assets value when buying shares. Now at 35c they are buying those net assets at half the book value. This is a massive change. Bacci says the company is dying but if you look at the net assets even ignoring the schist they have been growing strongly and have almost doubled from 37.4m to 71.8m over the last two years. The market capitalisation even allowing for new shares issued over those two years has halved.

Whatever happens to Penrice from here on in, it is a lot better value now than it has ever been before.

GPASAS