when 80c = $1.20, page-39

Lol malay you say it's unlikely to retrace to 60c, but likely to go the other direction. You then pretend that this is based on a 'value judgement'. Please provide me with your value analysis of PBG which indicates $1.60 is a fair price? .

Comparative to pricing on other listed companies, PBG appears to be close to fully-priced. Please don't take this as sour grapes, I had a fantastic run out of PBG, I bought in at 24.5 cents, sold at 85c, and I made the purchase based on fundamentals. However at current market prices I don't believe there is sufficient margin of safety given the difficult to implement PBG 2010 strategy.

Pacific Brands is in a highly competitive industry with little pricing power, competition is unlikely to decrease, there has been signficiant dilution of PBG shares, still significant debt which will restrict their ability to capitalise on opportunities, and their only real option for increasing profitability appears to be Pacific Brands 2010. If they have $150mil of fat within their organisation, then I would question why this has taken a downturn to identify. It's possible that they may even achieve their target of cost reductions of $150 mil per year but as their primary profitability driver its hardly an exciting prospect. I don't see how any of these characteristics would imply that Pacific Brands would deserve a premium price tag. Quick analysis of $100mil NPAT/775mil shares = 12.9c EPS so 90c = PE 7 assuming there is no reduced profitability this year, which is questionable. Look forward to your analysis.

At $1.60 Pacific Brands would be on a PE of