PBG - Pacific Brands

[trading_rookie]

...wish I had the gonads to buy more of this when it went down to a low of 14c. Finished trading today at 69c. Nice return.

 

[CAB SAV]

Got a hammering in General Chat thread when CEO announced 1850 jobs to go off shore. looked like a good opportunity to buy @ .15C 4 weeks ago. Finished at 31c today and not finished yet.

Someone has been buying a lot of Jocks & Socks today, hit .445c!
Maybe shorters have put the skids on and need more jocks.

Finished @ .81.5c after high of .84c. We all need fresh undies with this market. Hard to price now. Passed my target of 80c.

 

[Tranquility]

Hi All,

PBG is currently doing some capital raising and has offered me a parcel of shares, at 0.60 each. The currently share price is 0.785, so it sounds like a good offer to me.

Does anyone know, from past experience, whether the share price tends to drop after revenue raising is completed or whether it keeps on slowly climbing? I'm a little worried that once they release more shares into the market, demand will decrease, thereby lower the share price.

Thanks

T

 

[oldblue]

It's very hard to generalise about this - it all depends on the company; the relative amount of the capital raising vis a vis issued capital; the reason for needing the money; the price at which it's offered; what happens in the market prior to and following the issue, etc.
I don't know anything about PBG but my approach has been that provided I'm comfortable with the circumstances ( as above) and as long as there is a good margin in the price, I'm prepared to go along and subscribe. In the cases of TSE and FBU which are the only ones I've been involved with recently its worked out pretty well. Whether this is mainly a case of fortuitous market conditions/timing it's hard to say.

 

[Tranquility]

It's a bit of a gamble... but buying any stock is

The reasons for it and what they plan to do with the money seem pretty solid and will decrease the debt amount the owe, leaving them in a better position should the retail market decline.

They've done me well so far, I'm think I'm donna do it.

Thanks for your help

 

[Riddick]

PBG- where to now

Interested to hear folks thoughts on pacific brands. Has been creeping up the past few months, currently trading around $1. recent rights issue pretty much wiped out long term debt. P/E just over 5.

bought in at 18c so sitting on good gains.

whats the consensus for the rest of the year?

 

[jonnohowe]

Re: PBG- where to now

Interested to hear folks thoughts on pacific brands. Has been creeping up the past few months, currently trading around $1. recent rights issue pretty much wiped out long term debt. P/E just over 5.

bought in at 18c so sitting on good gains.

whats the consensus for the rest of the year?

Analysts reco is to BUY/HOLD. Most are confident with market outlook since the staff layoff and buget cuts. Still has good brands/campaigns and good team under management. Long term view on this stock would be appropriate, but if you got for .18c I'd be pretty happy with a 500% gain!

 

[Riddick]

Re: PBG- where to now

Analysts reco is to BUY/HOLD. Most are confident with market outlook since the staff layoff and buget cuts. Still has good brands/campaigns and good team under management. Long term view on this stock would be appropriate, but if you got for .18c I'd be pretty happy with a 500% gain!

They were my sentiments exactly. If I had real balls I would have picked it up when it was 14 cents... Thanks for your comment, always good to get a second opinion.

 

[Riddick]

Not much support for this company lately, which to be honest seems pretty wierd

* Low P/E
* debt under control and not due for maturity for over 12 months.
* finalising a restructure and moving forward into profitability
* strong brands across a range of consumer discretionary.
* strong leadership.
* assets and cash seem to value this stock at about $1.30?


keen to hear what the collective mind has to say?

 

[satanoperca]

Had three trades at this stock from $0.30 and final sell at 1.27.

Been waiting for a new entry point but the volume has dropped right down.

As to why, I have no idea.

 

[Riddick]

just not popular with the folks, most of which are probably at home or work right now wearing bonds undies...

I got in at 18 cents and have completed a number of trades around the 1.20 - 25 mark for some good profits. waiting for it to move before i opt back in.

for a company that has released all its bad news with blue skies (apparently) ahead you'd think some of the 3- 6mnth players would be interested.

 

[satanoperca]

Momentum starting to pickup again. Nice wedge forming. Could be a play again soon. Looking at the chart a bit of a sell of in the last month or so.

 

[Riddick]

Momentum starting to pickup again. Nice wedge forming. Could be a play again soon. Looking at the chart a bit of a sell of in the last month or so.

nice work. I wonder how many people follow this particular stock? seems to have a bit of resistence at the 1.20 mark. head butted a few times and droped back.

the conditions of the last few weeks probably haven't helped either.

 

[ROE]

Not much support for this company lately, which to be honest seems pretty wierd

* Low P/E
* debt under control and not due for maturity for over 12 months.
* finalising a restructure and moving forward into profitability
* strong brands across a range of consumer discretionary.
* strong leadership.
* assets and cash seem to value this stock at about $1.30?


keen to hear what the collective mind has to say?

I avoid chance of it going to corporate graveyard isn't out of a question
plus it didn't even pass my first rule

 

[Riddick]

I avoid chance of it going to corporate graveyard isn't out of a question
plus it didn't even pass my first rule

could you elaborate a little? I can't see your 'corporate graveyard' reasoning in the next 12 months. I agree it can happen. it can happen to lots of companies.

also wouldn't mind knowing your first rule? education is the key to success.

 

[steptoe88]

has everyone sold out of this? not a word for 6 months? i guess its a wait and see what happens as the directors plan evolves

 

[irenebrisbane]

I, too, would like to know if everyone has sold out and why it has gone so quiet lately. We carried out a review of our stocks today and Pacific is on the doubtful list as to whether we keep or sell. Any views from anyone? Price today was $1.370.

 

[steptoe88]

I, too, would like to know if everyone has sold out and why it has gone so quiet lately. We carried out a review of our stocks today and Pacific is on the doubtful list as to whether we keep or sell. Any views from anyone? Price today was $1.370.

For fear of ramping I will only say that I am happy to hold PBG, and based on their plans I am happy to wait and see.

___________________________________________


please be aware that this is only my opinion it is not to be taken as advice or recommendation to buy sell or hold any share in any Company, I am not an advisor.

 

[lucifuge]

I read today on "Investsmart" web page,

"....PBG is a leading manager of a stable of widely recognised consumer brands. The group manufactures, sources, markets and distributes the brands primarily in Australia and New Zealand. The company is however in the process of altering its strategic priorities by ceasing manufacturing and increasing direct sourcing from Asia....."

This seems to fly in the face of "Buy Australian". I had planned to buy this stock until I read this. Do others see this as a negative? Certainly their market grip is very strong in terms of supplying the major Aussie chains, but that single point worries me.

 

[oldblue]

I was under the impression that PBG had been steadilly increasing the proportion sourced from offshore for some time now.

Given Australian wage rates and the cost of production generally, isn't this an inevitable trend?