Nothing changes ...

 twitter: @PaperlinXsuX  

“Overall, the PaperlinX story remains the same. The near-term earnings outlook for the company is horrific, but this is offset by the fact that it has negligible debt and a large working capital surplus. It remains one of the riskier hybrids on the market but trading at approximately a third of face value, the hybrid remains an interesting story.”

Who said this, and when?

He went on to comment:

“Hybrid note investors have been rewarded as a slew of successful capital raisings and improved sentiment across the markets has underpinned the future of a collection of listed hybrids.

·        Standout issues are the Multiplex notes, which have tripled in value since March;

·        The outlook is also improving for Australand’s notes after a recent capital raising; however

·        Some risks remain for holders of the notes issued by insurer IAG; while

·        Ongoing woes of PaperlinX suggest challenging times ahead.”

Now over two years later, we can still say:

“Overall, the PaperlinX story remains the same. The near-term earnings outlook for the company is horrific, but this is offset by the fact that it has negligible debt and a large working capital surplus. It remains one of the riskier hybrids on the market but trading at approximately a third of face value, the hybrid remains an interesting story.”

Another buggy whips business … Meanwhile, today saw the fall of another iconic Melbourne buggy whip business. 93-year-old retailer Fletcher Jones went into administration on 8 December 2011. One-time retail and manufacturing giant Fletcher Jones has entered administration, citing difficulties attracting younger people into their stores and a tough retail environment. With its glory years well behind, the company dressed the Australian team for the 1956 Olympic Games, the company lamented: “We were very big in the corporate market in the years gone by.” Do you see any similarities between PaperlinX and Fletcher Jones?