I have every confidence in David Trebeck. He will get things done but its the starting platform and behaviours that bother me:
1. The outgoing chairman states: "Importantly, the capital raising is primarily a rights issue and therefore provides every Penrice shareholder with the opportunity to invest with minimal dilution." that's not true as you gave outside investors 15% and let them participate in the rights issue as well. That's dilution in my book.
2. The commitment is to confirm the previous forecast but nothing more even considering that the interest saving on 28m for 6 months must be upwards of 1.2m.
3. No comment about the stock figures.
4. They talk to having done so well and not getting sidetracked yet they never planned for the gearing and had one capital raising last year and now the biggie and had to stop dividends. I don't see that as planning I see that as things happening to you.
5. Everyone knew that at 64 to 70c the A $ was undervalued why did they not hedge the exchange then. No -one mentions it so after being burnt it looks like they did nothing.
I am not very impressed at this stage and will only re-enter at the 70c level. Given where some of these companies with rights issues traded today it could easily be on the horizon.
Very few shares held
PSH Price at posting:
86.4¢ Sentiment: None Disclosure: Held
