That is exactly what is going to happen to PF, it has to an extent already happened in the past. We have seen the SP go from 3p to 18p with it predicted to hit 30p. But those same investors are also it's downfall. I cannot believe how well the SP stood up on the cash call in 2013, a few months later it was 25p!!!
you know why, may be too many shares are in the hands of weak retail investors.....those fund guys make more money when shares collapse as they can build their stake cheaply since they don't want to sell....more money coming into fund means it's better to keep shares down....just look at greggs.......it was down for so long and within a year it double easily then tripled...that's how they make money.
I appreciate the point you are making and it is a defensive stock, but when has it ever behaved like a defensive stock? By right, it should be up there with Severn Trent and National Grid etc, my goodness, it falls at times of economic uncertainty, as if it were a Tech company. The reason for this is clear, it has to date offered little certainty, because it has been shrouded in debt and we have never been able to see it's true surface. Some of the brands like Batchelors require improvement, hence the Nissin deal. But Sharwoods is another brand with potential and all in all, with the right type of investment who knows.
PFD's debt is tiny if you know how american companies operate. PFD is no BHS or some fancy business. It is a defensive value business with great brands.....i just don't know how they managed to borrow at those high rates. It is a safe business if managed well without the execs overpaying themselves and favouring their banker friends by borrowing at 6.5%......come on....it's a food business, i see PFD's brands everyday and they manufacture supermarket's own brands too.
but the problem with selling off parts of the business means the ability to become a ''debt busting machine'' diminishes drastically. Yes by selling off parts they can reduce the debt, but the remaining debt is still so high. This is why the first bid was at 52p. The only way forward is the way GD is proposing, by growing the business with the introduction of new products, we can get growth of 4% eventually. If MC bought the powders business, they would invest in it, this is what GD wants to do now.
thought the weak pound would embolden Nissin or McC to make a hostile takeover bid......Nissin can sell the rest of the business (spice / sauce) to McC and flog sweet treats to somebody else or float it.....imagine Mr Kipling IPO.... could be popular with pensioners.
thought we may have broken through 50p by now. Think the best we can hope for between now and new year, is an rns showing further stakebuilding. Indeed, since the last one, we have seen enough selling/buying for one of the shareholders to have topped up.
'The factory does make other cakes – today it is whipping up chocolate fudge logs for Sainsbury’s – but mince pies are the main event and the factory will bake more than 200m of them this year, a record, to meet demand. Six out of every 10 households in the UK will buy them and there is a growing export market, led by Australia.'
This should get some notice from investors looking at the winter season...
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