Like the chimes forum - Looks like bias is towards speculative shares.
Good Forge trade. Thats what I dont get:
The PSH business could generate $10m before tax and say $7m after tax. There is 91m shares in issue. Thats an eps of around 7.6 cents. Its clear that no-one could build a new Solvay plant so the profit is limited by the optimum production and the exchange rate.
The upside or growth is limited so its not going to get a rating of say 15PE so lets say it gets a 10 PE thats 76c. The whole thing was murdered when they issued the new shares last year. On 30 June 2008 they had 45m shares in issue two years later they have 91m and no real change to business.
When I was in this share it was for income not capital growth. I was looking to a dividend of say 5c of earnings around 10c and after adding franking virtually a 10% dividend. I think you can find far more interesting speculative shares to invest in.I am not allowed to cross promote but if you quick search on our monikers you will find out what we are discussing. I dont see how this stock becomes capital growth. Yes you can double your money but thats not out of growth thats out of returning to profit and decent cash flow.
Only hold an uneconomical amount which was to be on register now not worth selling.
PSH Price at posting:
31.0¢ Sentiment: None Disclosure: Held
