OTCPK:PILBF - Post by User
Comment by
CalifDreamingon Jul 22, 2008 3:04pm
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Post# 15317912
RE: Why is Polaris down?
RE: Why is Polaris down?This was always a dog stock - it's just a friggin gravel pit operation after all. Low margin, high capex. Energy prices have crippled them - one of their biggest costs. The "story" was great - until they had to start reporting bottom line numbers.
PLS is caught between a rock and a hard place. Rising costs over which they have no control and "unprecedented" decline in aggregate demand in their key markets. Aggregate demand will recover eventually, but ever rising crude prices are likely to remain. And high energy costs kill their business plan.
Yet some wonder why PLS is down? Some, like me, wondered why PLS was ever up.
The best result is for PLS to sell to CEMEX, a company with it's own problems, but at least far deeper pockets. PLS shareholders may then stand a chance of recovering some of their investment back.