There is something which attracts us to watch inevitible disasters slowly unfold in front of us. I find similarities with the movie Titanic as I watch Penrice slipping away.
When the Titanic was holed the designer happened to be on board and said that its sinking was inevitable once the bulkheads were breached. It was fundamentally flawed. I have thought Penrice's demise was was similarly inevitable for some time, it too is fundamentally flawed.
The Titanic sank slowly on a moonlit night giving the women and children time to leave the doomed ship. Similarly those who needed the money have had time to get out of Penrice as it's shareprice has slowly sunk.
The Titanic and Penrice's crews have both behaved impeccably. Even now the calming band music carries on.
Towards the end the sinking accelerated as the angle of the ship rose and she sank bow first with the remaining passengers clinging to the stern rail. In this case the angle of decline can be seen from banks having $80m at risk with equity now valued at $15m. With that angle rapidly increasing it will be the bankers gripping the stern rail as she goes down.
A market cap of $15m, negative cash flow, banks down $80m, high AUD/USD, expensive repairs required, carbon tax?, etc. Its all bad news, the recent patent looks good but as useful as rearranging the deck chairs at this stage.
The water is cold but better than going down with the ship.
SOS, SOs, sos, Bacci
PSH Price at posting:
15.0¢ Sentiment: Sell Disclosure: Not Held
