"PaperlinX chairman Harry Boon still expects “further changes, heartaches and drama” but this was “probably the turning point” for the group."
Australian Financial Review - June 26, 2012.
Harry Boon talks of turning points. This is naive and misleading. It's pure spin.
Harry Boon's last Ace was
trumped by Mr Market.
When words fail, and money fails, there's no hope for incumbents.
There are six major turning points on the price chart of PPX since Harry Boon became a director in May 2008. Three up and three down. Ref Library/Chart | PPX | Turning Points from May 08 to July 7, 2012 | 6 Jul 2012
Of the three UP MOVES, the first two were because of significant debt reduction from forced asset sales in 2009 - the sale of Australian Paper Manufacturing to Nippon Paper and settlement of sale of the last European freehold properties.
The third was based on the hope of Harry Boon being deposed at the EGM. He won only 51.84% of the vote - no endorsement there.
Let's not be too Hastie with predictions because a price of zero is rapidly closing in on PaperlinX too.
The indisputable fact is that with no upturn following the Strategic Review, and concurrent sale of US operations, mere words or cash are no longer working for the PPX board.
Promises out to 2014 by Toby Marchant are worthless.
The market now appears to distrust current management to use the last significant cash available from asset sales.
If you doubt this, take a moment to review the Company's 24 slide PowerPoint Business Update presentation of June 1, 2009, upon completion of the Australian Paper sale to Nippon Paper. Ref Library/Management | PaperlinX | Presentations | Completion of Sale of Australian Paper | 1 Jun 2009
Jun 1, 2009, was near the bottom of the GFC. PPX shares were then 54 cents, rose to 82 cents and are now sub 6 cents. Is that the best you could do? Why will this time be different?
It was demonstrated pre EGM that hope is the missing ingredient at PaperlinX.
This talent drain cannot be solved by the incumbent leadership. It is a weakness not immediately evident in financial accounts but will finally show up there. What will PPX say then?
Hope rests with new blood at the top.
To Harry Boon: Only you, and you alone, can give PPX hope by sacrificing your personal ambitions.
Telling the world how hard you try, and blaming others, demeans you and doesn't help investors.
Are you big enough to stand down now? Or do you want a second financial collapse on your conscience?