let's get back to fundamentals, page-15

I haven't seen anybody mention anything about the possibility of A$ hedging being put into place by PENRICE.

The NPAT impact is expected to be about $130,000 for each 1 cent movement up to 89 cents to the US dollar and $30,000 for each 1 cent movement above 89 cents to the US dollar.

With the cap raising the company also forecast this to investors.

Offer Document
expect to exceed $9M NPAT
reinstate 40-50% payout dividend
new shares 30.5M
Weighted average number of ordinary shares on issue used
Shares 2009 AR Note 23
52,963,202+7.9M+30.5M = 91.36M shares up 72%
FY10 earnings over $9M
$0.1+ eps
dividend $0.04-.05 based on 40-50% payout which is low for an Australian company and has room to go higher in coming years.
dividend yield 5-6.3%

A placement of approximately 7.9 million shares to institutional and sophisticated investors at $0.85 per share, raising approximately $6.8 million (Placement); and
a 1 for 2 non-renounceable entitlement offer (Entitlement Offer) to existing Penrice shareholders and to participants of the Placement at an offer price of $0.70 per share to raise up to approximately $21.3 million.


I have been doing my own research and trying to figure who has been selling down from around 85c and why and my guess is.With profit down grade and no dividend would of pist off the institutional investors who bought into the cap raising.

DEAN MOREL from fusion investing and analysis.com,has written a few reports and response on Penrice in the past 6 to 8 months as well.Which I found an interesting read as well especially his response after the profit down grade was announced. I posted this response with a different subject.

Hope you may have found this of some interest,as I am going over old ground just in case I missed something and thought Id add it to the discussion.