I think the new CEO is restructuring this company very well,...

I think the new CEO is restructuring this company very well, whereas I don't believe the previous management had it right.

He is reducing the stock risk by turning much of the 3rd party licences stock levels and holdings into cash. This is significantly lowering the risk. If he also sells Dunlop Flooring and Tontine, then the cash will roll in without much impact on the earnings.

He then sold one of the three pillars to Wesfarmers, to basically eliminate the debt, again lowering the risk. The balance sheet finally looks excellent.

Despite all of these exits, the costs also look in alignment, so the hard work has been done. This is no easy task, the CEO would have had a few headaches. They are rolling up the sleeves and the results are starting to show. The board should be commended on their selection.

If you remove all the non-cash impairments that relate to the previous management's overpayments, then the annual EBIT of $50M to $60M makes it look cheap. It's mainly owned brands (Bonds and Sheridan).

On the price rises thread, all of PacBrand's competitors are in the same boat, so its a case of who blinks first, which may effect market share, however if each unit costs more, and you sell the same number of units, then we have inflation, and increasing profits for retail. I don't see it as a negative for PacBrands, it would be different if they were competing with Australian manufacturers.

I just bought some shares, due to the above. What does everybody else think?

Thanks