Ann: Record FY21 results deliver positive EBITDA, page-54

[This post is in response to PYG being referenced in discussion on the thread of a different stock]


@stihlalive ,

I did look at the PYG prospectus at the time of listing, and have casually tracked the company's progress since then.

I like the look of the board and management - well credentialed and with ample alignment with the owners of the business

However,  I've not been able to come to a clear investment view on the stock yet, due to 2 main reasons:

1.)  I'm not sure that PYG's service offering is uniquely differentiated, making it a "must-have" in the minds's of PYG's targeted customer base.  Put another way, there are plenty of mouse traps in this space; I'm not sure why PYG's is necessarily the best one.

2.)  The pace of acquisitions has been so frenetic, that I have not been able to obtain a feel about what the true earnings base of the business is, or how successful or otherwise the aggressive acquisition strategy has been.


Don't get me wrong: I don't hate it as an investment idea.

At a sub-$50m EV, it certainly isn't priced for anything like a hill of beans of success.

It addresses a market which is certainly big enough to see it become a multi-hundred million dollar business'; it's just that the path to get there is not sufficiently obvious to me.

.