annual result maiden dividend , page-6

Dream Catcher

I think the quarterly and the annual result will be quite different than you anticipate .

Cash flow can be misleading , and I think because of this the ASX should only require those companies with cash shortages to do these reports

Cash flow reporting only tracks cash , profit and loss and balance sheets reports are quite different to that and are what we should use to measure performance of our corporations .

My prediction reading the quarterlies commentary is that this years result will be a recovery year , and the 2014/15 and 2015/16 will be where shareholders get their long term rewards .

I think there is a chance they might hold off on the dividend till the first half next year ( just a guess ).

The reported revenue should be close to $16m
with EBIT improving from last years number nearer to 7% heading towards about 10% of revenue ( $1.5m to $1.6m )

If EBIT can be almost 4c per share that is 8 times higher than your prediction Dreamcatcher

I am hopefeul that in 2015/16 PGC will reach the $50m revenue target they have had as a long term goal and they can keep improving the return on revenue and get closer to the 15% EBIT return they have sugested is possible and what they seek under a greater scale

In this years result I am looking for 7 key things .

1. A confirmation from management that a greater market penetration has commenced in NSW and QLD opposed to PGC being so Victorian dominant but reliant

2. A confirmation that the reduction in the debt that was expensive is well above the capital raised to reduce that debt . ( ie they used Cash flow to retire even more debt )

3. See that EBIT is closing in on a respectable 10% of revenue compared to the previosu result whcih was below 7%

4. Have the dividend prediction of .5c per share confirmed

5. See that the desired revenues of above $15 m this year did occur , which would be a good increase over past years considering the last 3 years results included about $2m of revenue from a business they have since sold out of .

6. Have management confirm an increase in the number of products they can sell to the Aged care , Hospitals and and medical practises they sell to

7. Achieve a $ 1.5m EBIT ( about 4c per share )


If that can occur Dream catcher I doubt very much if we will ever see PGC below 30c again let alone the 25c number you hope they will drop to

I concede however if your number of EBIT at less than 1c per share is correct ie ($400,000 ) I do admit I could see the stock trading below 30c again and would be as equally disapointed as you were when you took profit .