Hi drummnutt, I share your positives on PBG.Having initially...

Hi drummnutt, I share your positives on PBG.Having initially disappointed with their approach of letting a couple of thousand of their workers go, I applaud them for making the hard decisions.You are correct in your comments that PBG at this price does not look good. I have been buying more PBG basing on my knowledge of the textile industry.With proven brands, it is a high margin business PBG is in, though it is not as lucrative as the high fashions or young peoples wear such as billagong, country road, or fashions like the just group. The demand will be more reliable and tend to be less volatile as they are associated with basic demands and basic necessities.With the Australian dollar moving up which are good for importers, ability to pay less for their goods, thus increasing their marginal profit. What they make they keep. PBG has been subsidising the local textile manufacturing industry out of the profit they make from their imports. Now with the high cost products gone and also concentrating on the few product lines that generate bigger margins and continuous income, it is highly lightly the turn around for PBG will be faster than expected.The stimulus from the injection of liquidity into economy and the lower interest rate,it is unlikely that the recession will be a prolonged one. With China coming back into our market for resources as their stockpiles have been running down, our economy will recover faster than expected. The shorts will have to cover some time and I tend to agree with you that making a dollar or two or more at this level in a year time is not out of the question. I am even bold enough to forcast that it is even likely that PBG SP may even double within a period of 6 months.I am actually looking forward to their next report indicating they have turned the corner.The big losses they incurred in the first half year is mainly due to the write down of the intangibles as a cleaning out of the books for the new management(CEO) and not an operational loss as their business is still profitable.I have set a side a portion of my investment deemed high risk for PBG,
but diversified as to reduce the risk. It is not a recommendation for PBG here but an educated speculative diversified investment for my portfolio which may not be applicable for everyone.Investors should talk to their financial advisers and analyse their own position before buying PBG.