In my view the only thing Penrice had going for it was that it used to pay a dividend. That has been stopped for some time now with no sign of it starting again. Therefore these shares are not a working part of anyone's portfolio.
I think there must be significant doubt it will ever pay a dividend again. There is likely to be ongoing requirements for capital to replace equipment, upgrade, update, shift overburden, comply with tightened regulations, etc, etc. That is ontop of paying for any machinery breakdowns.
There was a time when this business was a cash cow, as it wound down from decades of high maintenance by ICI its private owners probably milked it. It is now an old deteriorating plant in a high capital industry within a low market cap single operation listed company.
Farmers know what to do when working dogs stop working.
Bacci
PSH Price at posting:
86.0¢ Sentiment: LT Sell Disclosure: Not Held
