strengthening ozzie dollar, page-25

Hi drummnutt,

Where did you get the 2 for 1 offer? If that's what you thought the rights issue was, I cannot blame you for your conclusion. FYI the rights issue is only for 3 shares out of every 4 shares held.

Basically I am a FA, but I also realise that in a not so perfect market , not all information are disclosed.So for smaller caps shares I have to be more open minded and follow the money trail, that is through TA.If you want to go broke, there is no surer way then following FA alone.

If you refer to my earlier posts, we did agree on a lot of things, when the shares were at a lower price. That is also a fear that PBG may go bust then. This was my thinking at the time,as all the bad publicity came out about the closing of the factories etc.I also reasoned, if it went under, most of the financing were for intangibles. The banks would also be in deep shit if PBG went under. One good thing is, it is only selling basic essentials with good and well known brands for quality wear. It was a risk to buy PBG then, but it was a calculated risk, then I did not buy everything in one go. There is no sure thing on earth, everything came with a risk.

The ozzie $ was 64c, then. Today it is 78c, more than 20% reduced cost. Unprofitable cost centres closed down so that the business can be run efficiently.The balance sheet is strengthen through a capital raising and debts are brought to a more reasonable level.Those that bought in over $2 will definitely want to average down, so that their unit cost would be reduced.If institutions were willing to pay over $2 for PBG then, what will stop them buying at 80c.Margin calls and short selling did recent buyers a favour by giving us a chance of buying PBG cheap on speculation alone then.

We disagreed when PBG broke through resistance level. Yes I put in a lot more immediately after 40c, whereas you chose to bail out.I have been buying pyraminding all the way up and only selling when I need the money.All along I held a very overweight position in PBG. I am not as smart to have sold everything at the top at 85c. I sold some, so that I can buy more of the rights.Even for the new shares I am in the money, so the decision of not listening to your advice proved right.

Even now I am not as sure as you giving everyone advice to sell and forcasting it will come back to 40c.I have not sold all my shares, as I thought support is around this level. I thought there is more upside on this one yet.The chart still show a healthy trend and from today's chart, it look like it is due for another run.The chart is telling me, there is still strong support for PBG. There is also accumulation on this one by the sheer volume alone, on the way up.There are profit taking going on with PBG and at the same time accumulation.I am glad of the profit I made on those that I sold, and I am having a second time around on the new shares.I cannot or am not advising others to buy, hold or sell, but I am a happier person by keeping PBG and buying more under the new offer.

I am not as sure as you on the future of PBG, but for the time being, I like the chart of PBG, whether I am looking at PBG as a short term, middle term or long term trade.The chart definitely does not show up as a SELL for PBG.For holders of PBG, can always take up insurance by having a stop loss in place.Don't forget liquidity and credit is more easily available now than it was a few months ago.Don't forget, even if there are shorts, they have to be covered some time. It is a matter of today's pain or tomorrow pain for the shorts also have their risks too.Are you still shorting on this one, drummnutt.