I am a previous PGC/PGCOA holder and did not take up my significant PGCOA (5ook+) entitlement in May.
Quite simply, this was sold as a compelling growth story, but has turned out to be anything but. That FY13 revenues are going to struggle to meet what they did in FY11 is evidence of this.
Currently trading on more than 10x EBITDA (EV of $12.9m and midpoint of FY13 EBITDA forecast - $12.5m)
This is far too high - a private business would struggle to be sold for 4 / 5 x EBITDA.
On current metrics PGC is way overvalued.
Nothing against Management - they are committed, hardworking and on the whole, good decent guys, but sometimes the headwinds are just too strong.
PGC Price at posting:
20.0¢ Sentiment: ST Sell Disclosure: Not Held
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