Klutch, Unless one studies the detailed idiosyncrasies of the...

Klutch,

Unless one studies the detailed idiosyncrasies of the PMP balance sheet, one will never really understand the investment thesis for this company.

So, with respect, while usual investment practice involves an assessment of the business model first and foremost, in this case that doesn't work, I'm afraid.

Ad the reason for that for PMP one has to put the balance sheet "cart" before the business model "horse" .

Because when you do that you'll find that, at the current market value for the company, you are getting the balance sheet for some 50c in the dollar.

Or, viewed another way: the "business of printing stuff" implicitly has a negative value.

With little doubt, its not a Woolworths or a Wesfarmers, but if someone woke me up tomorrow and said, "Happy Birthday, the cash flows from this print business is your birthday present", I'd happily accept the gift.

That I'm effectively being PAID to accept it, makes it that much more palatable.

Of course, there remains execution risk in the months ahead (which is why the stock trades where it does).

Cam

PS. Take care to not confuse frequency my posting with conviction I might have on any given stock. The two are not necessarily mutually inclusive. PMP constitutes just 1% of my equity portfolio and I doubt if it will ever get to another 50bp more than that. And that's because it is, well, quite a risky investment, frankly. So when you say I am "very bullish", I am no more bullish than on other stocks I own in far larger quantum than PMP, such as ARP, SGN, SKE, RHC, CCL, WES, or WOW, but about which I might post only erratically or even rarely. It's just that some aspects of PMP happen to be quite topical at the moment.