Originally Posted by
bottomfeeder
I knew a guy who was coerced into paying for a stud service by loan funds on the basis that when the foal was put into auction it would make cost plus: the guy had to pay for all the costs, training, vet fees, living expenses, until the foal got to two year old. Then pressure was put on him to repay the $100k stud service loan. Those in the know of course knew the financial pressures he was under, so when it went to auction "one of the club" put in a relatively low ball bid. He bought the horse ready to run all trained up as a two year old for the cost of the stud fee.
You may wonder where I am going with this.
PEB is like that. All the research, groundwork, financing has been carried out to get to this stage. The company is now at a stage where new financing is going to be difficult. Now whether engineered to some extent the low blow by those in the US and resultant current SP makes it a prime takeover target for someone who is capable of resurrecting the US market and expansion to other markets will soon be active. Buying now may be rewarding if you want to take the risk.