PGC - Licenced to Bank

[ETC]

You're forgetting that PGC are going to place a percentage of their BSH shares with institutions, if they place say 20% of these shares then the ratio will be more 0.20 or 5 PGC shares to 1 BSH share. Not sure what they'll do with the raised capital. Maybe use it to off set the 30 million dollar loss on PGW. I'm more interested to know what the Perpetual Group is worth. I had a quick scan of last years annual report and came up with 141 million (4.5 for the trustee business, 137.5 for the asset management parts) divide that between the 808 million shares you get 17.5c

In the strategic review the Perpetual Group is anticipated to make a 4 million dollar loss this year (due to growth strategies). So once the bank shares are dealt out and PGW is sold, shareholders in PGC will be left with an asset management company that in essence is worth 17c and isn't producing any dividends. Though they will potentially have a slush of funds from the sale of PGW and BSH shares to institutions.

[SCOTTY]

Which would make the BSH component of PGC shares about ... 88 / 4 ... 22 cents leaving a residual PGC value per share around 11 cents.

Yes Belgarion - At todays price of 34c less the 22c for BSH is 12c. However the net assets would be more like 30c. Not a bad discount!

[climbtree]

I don't think anyone knows how many BSH shares PGC holder will get as I've not seen any ratio as yet. BSH and PGC shares are dropping on tiny volumes so it represents uncertainty (and fear) by small holders - at least this is what I think. Hang tough and trust the fundementals.

I'm not too concerned with what the ratio will be, I'm worried about when they'll be divvied out. The record date is long past, right? I've held shares in PGC for a long time now and I feel wary of holding onto something that I think SHOULD be big and being disrespectful of what the market is telling me. Quite often after they take a step forward - in the right direction - the share price plummets, though if I recall correctly when they announced the sale of their PGW holdings, at a huge loss, a rise followed.

They seem closer than ever to becomming a bank and people are still selling at a loss; I feel like I'm missing out on a big secret. I'll stick to my game plan but it is making me nervous

[geezy]

big volume today, ann on the cards?

[SCOTTY]

I'm not too concerned with what the ratio will be, I'm worried about when they'll be divvied out. The record date is long past, right? I've held shares in PGC for a long time now and I feel wary of holding onto something that I think SHOULD be big and being disrespectful of what the market is telling me. Quite often after they take a step forward - in the right direction - the share price plummets, though if I recall correctly when they announced the sale of their PGW holdings, at a huge loss, a rise followed.

They seem closer than ever to becomming a bank and people are still selling at a loss; I feel like I'm missing out on a big secret. I'll stick to my game plan but it is making me nervous

PGC Chairman Bruce Irvine was reported in the Christchurch Press 17.12.2010 saying that the PGC shareholders would get their BSH share distribution "on or before 31st March".

The 24.12.2010 NZX release reported that the PGC Half Year to 31st December is expected on or about Friday 25th Feb. No dought all will be revealed at this time.

[climbtree]

Cheers; looks like I need to invest in a calander haha. Exciting times.

[SCOTTY]

Looks like I'm not the only silly bugger buying today. 2.45 mil traded so far.

[percy]

Looks like I'm not the only silly bugger buying today. 2.45 mil traded so far.

Well I think you are far from being silly;only wish I was as BRAVE.!!!!

[SCOTTY]

Well I think you are far from being silly;only wish I was as BRAVE.!!!!

Thanks Percy.

Would be interesting to know who the sellers are and why they would sell at 33/34c?

Hopefully only the TA guys shooting themselves in the foot!!

Cheers

[Phaedrus]

Would be interesting to know who the sellers are........Hopefully only the TA guys shooting themselves in the foot!!!

I can assure you that it most certainly won't be them, Scotty. PGC "Sell" signals fired literally years ago - and it's been in an accelerating downtrend ever since. No TA would go anywhere near junk like this - especially given the complete absence of any Buy signals.

One clue we have here is the falling On Balance Volume indicator. This indicates distribution (larger holders are selling to smaller holders). We can only assume they are selling at 33/34 cents because they fear that PGC will continue falling.