All though I have Fernie on filter, I did actually see his post today via my phone and I also agree with him that the sp is drifting down now due to the shenigans of the supermarkets. This is though a very cheap share price now and I stick to my original opinion that there was no way a few months back Fernie knew it would go this low, it was just a hunch of his and wish full thinking. Fernie- regarding how low you think the supermarkets could go, did you know that W. Buffet is selling off his tesco shares at massive lose and apparently he has a but order set for 57p?
Fernie123 : I am in agreement with this. We may even have a very cold winter as we had in 2013. This is definitely a hold and/or top up. The company is not going to need further funding in the near to medium term.
If you are running at a big loss here then hold. Stick it out. Pfd will fall further but in the long run it should return to about 50p - at some point over the next year. The fall which we are witnessing is directly linked to the problems that our major Supermarkets are experiencing. If they are struggling then they will squeeze the pips out of the likes of Pfd! My prediction of 20p was not a guarantee. It was an opinion. An opinion formulated after studying and investing (on and off) in this company over the past 5 years. The trick here is to work out when the likes of Sainsbury's and Tesco shares will bottom out. I think that they are close. When they start to head upwards then the likes of Pfd will slowly follow..............
My gut is telling me there is somebody driving this down to pick up cheap shares, I have seen it so many times on aim. I will be really interesting to see the price of PFD Mon/Tues my guess is that by the end of next week we will be back to 38
Here looks a bit better than 3 years ago when I was last here, and as I look in to the trading one thing is very clear, the likes of Tesco and big quality chains over the last 10 years have grown own brands a great deal, this had a effect of removing shelf space to the established labeled brands who were then from falling sales were forced to adopt a culture of supermarket promotions, now the rise of the low cost own label only supermarkets has made the big quality supermarkets pay attention to where the differences really are between the now highly competative market. If the likes of Tesco are going to attract the clients back it will not be from selling own label products but from being a retailer of quality brands like PFD. I think the future here is going to be hard with a big dept and a big commitment to balance the books, but in relation to reward and risk im looking at a lower entry price for so much risk in a hard choppy market.
Unfortunately these old, you might say well established, brands have been living on borrowed time as they have been under invested in marketing for years now. The company has been living off the rewards of investment made years ago. Reinvigorating the brands and making them relevant to younger consumers is starting to happen but will take many years and have a considerable cost at a time when the company needs to pay down a pension deficit and other debts. The financial restructuring has been a huge success and given this company a chance but in my opinion the equity is not worth much until it can prove some progress in sales growth, profits and debt repayment. Until then it is a bit of a punt as it is not yet clear which way it will go. In my view it will eventually succeed but along the way there will be problems and fear driving the share price down. How far down no one can be sure but 20p would mean quite a bit of bad news and is perfectly possible. I want to buy this share but not yet.
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