That was a good result. A long way to go but heading in the right direction. I would have thought the shareprice would be closer to 32-33c on the back of this result and heading towards 50c next year as earnings grow towards $13-14m IMO.
Balance sheet has improved, but a lower debt level would be more desirable given they did receive Job Keeper payments and lock downs appear to be the norm in Australia and Job Keeper payments will not be around forever.
I feel the dividend was unnecessary, and I think the BOD were not totally convinced of the merits of a dividend given it is tied to a very generous DRP of 25c or a 5% discount to vwap (which ever is lower) a stealth way for the major shareholders to increase their holdings? This will be quite dilutive, but cash remains in the business.
I don't normally participate in a DRPs but will this time.
PGC Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
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