youfoolishboy wrote:I feel certain they will get a fine as I have worked in this industry for 25+ years and have a good idea what happens in it if they avoid the fine I will be amazed.
Selling at £8 is all good and well but when will it get there or even will it? Take a bid at £8 no uncertainity and the ability to invest elsewhere.
There's a few people agree with you re the fine, but it needs to be put into context: back in June the Evening Standard published a piece which suggested a fine of around $200m. The market valuation has dropped from nearly £5 billion to under £2 billion (£14 share price to £5.15 as I write). If the company is churning out work and generating profits as it used to, then why the savage re-valuation over a mere $200m? (to justify this, they'd have to be on a P/E of around 15 and for the fine to be a dead cert...)
When I compare PFC's share price with its competitors, I don't see the same erosion, so I don't buy the current drop as a function of being at a certain point in the cycle, but rather it's fear and uncertainty induced. If legal clouds hover over the company until 2019/20120, that gives them plenty of time to build a war chest to pay for anything, and I'd expect a re-rating once the uncertainty was lifted.
I just hope I still have the right to own my shares by the time we get there...