Thursday, September 24, 2009

Shareholder: Punch should consider winding down

No surprise here then. This analysis, of course, has direct references to other pubcos' levels of indebtedness against declining income, the security of the tie being under threat and continuing rentals coming under severe pressure, especially since RICS are likely to drastically rethink their methodology on valuations. It's just slightly amazing that it's taken so long for serious people to get to this point of open admission of the flaws in the pubco system.

Everyone's been in denial because the figures involved are so huge. At least Punch have been making a concerted effort to change their ways and reduce debt. There's just too much of it though.

The pubco business model is like a chocolate tea pot. Works great until it touches hot water.

Who, seriously, can deny the pubco model is not under threat now when even shareholders are recommending it should be brought to investor assisted suicide.

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