So I have re-looked at my position on PPK and have don't some soul searching, do I keep flogging a dead horse or leave the gate open
Chatting to the company and 3 top 20 holders it comes down to looking at the progress and expectations. Won't say who said what but it was an interesting process for me.
- Most in the top 20 bought many many years ago and at 6c. I'm sure they've had their money free riding for quite some time taken plenty of profit and they will be long holders. So really 50% of the shares will not change hands anytime in the short to mid future.
- CIB is a company maker in it's self, while we only hold 39% it is a slid business and easily the best investment to this date that PPK has made. The funds afforded to CIB has been vital to it's growth and it is a superstar for us. I believe that if CIB was on the ASX the MC would be over $114 Million at at 15 x P/E. It will be interesting to see the FY earning for CIB in '25 as those contracts they have with defense. I'm going on this information, the low end. "Industry Benchmarks: Defense contractors typically have P/E ratios ranging from approximately 15 to 25. However, established firms with strong government contracts and stable earnings might have P/E ratios at the higher end of that range or even exceeding it during periods of high investor confidence."
- LIS- A lot of feedback in regards to the lack of battery metrics from Leigh. Many SH have asked about recharge times, amount of battery used in that 30 minute flight and battery cycle life. So I believe that LIS will be having to address this in their next SH letter or 4c update? It is clear that SH are wanting (demanding) more information coming out of the company.
- PPE, I think they are just getting to the point where they may be turning a corner. This new Whisp7 that I mentioned recently could be a big seller. Easy to install and using CATL technology. With Labor looking like winning the election (don't shoot the messenger, surely Dutton will now have to step down and give someone with an ounce on character a chance) the home battery rebate will spark the house solar market to start buying up these batteries. if they can eek out 5% profit I'd say at a similar 15 x P/E PPE would alone be a similar MC to what PPK have now.
- WGL My feel is we are still some way off before a IPO for this company. However I think that WGL is going to be a big deal for us. It will only take one application, paint, marine biofouling hydrogen tanks, to then see an IPO be considered.
So for me, I'm a long term holder, I think in time PPK will be a great opportunity for a free ride and money maker like the current top 20. The very minute a deal is done for WGL will put them at a MC of $200 Mill plus which in turn will get us past $1. It really is that simple IMO. If you take the CIB value and PPE then I think we can safely say $50 Mill MC currently is easy. That is giving 0 value to to LIS and the shares we hold, 0 value to all the work and IP for BNNT and 0 value for WGL. (But we all know there is at least $100 mill in value there, just not market value apparently...)
Good luck, that 32c 100k is looking tasty for my last buy for a while. Anyone wanting it will need to go quick, cause I'm eyeing it off
EOTT? (end of trading today)
(20min delay)