time to buy more, page-45

Everything comes to those that wait. I think that punters that use investment brokers who service the company seeking capital and take a fee and the punter buying and take a fee - well you have got to understand then that churn is the order of the day. They then tell you that they are getting institutional investment - normally hogwash - at the bottom end of the market no Allan Gray or the like will invest as the cost of management of a small investment is the same as a much larger one within a company that has more analysts researching the company. PGC has no analysts that I know of and if they get one it will probably be paid analysis.

Really the type of investor here are private individuals and small investment companies where they can hold through the cycles - What I am not sure management has heard is that courting "institutions" at a market cap of $18 million is not going to happen - Its really got to get above $100 million rather better to get 20 players that are prepared to put up $500K and agree to hold for 30 months. Thats a great war-chest and far less volatile. They need to IMO lock up any new share issues so that it does not keep undervaluing the company on the market.

Mis-pricing - is not good in my game - I am measured by performance versus the market and right now this is hurting me - I am one of the lucky ones - I invested much earlier than the latest cap raising - imagine if you took a chunk at 37c in December - Its now 26c almost 40% off in a market that has been flat to slightly up. That's a very bad chart and versus the market over the past 5 to 6 months.Would I be this comfortable if this was the share making me dip below market performance. If it was an irritation - I would also probably just get out.

Really this is a process that needs to be fixed by the company - This roller-coaster does not help keep the punters happy and I think any upward movement will fight a wall of worry as well.

Management need to get the market cap close to $100 million over the next three years and need to do this on the back of delivering results and keeping a war-chest. That means an EBITDA of around $7 million. They should be close to $2.6million now so $4.4m to go. I think they could buy that for around $18 million that needs another $12million in share capital and I would want that in the basket at not less than 50c - That's 24 million shares and that is 89 million in total for a price of around $1.00 That's my target - no more than 100 million and a dollar per share. The cheap DRP will take it above that 100 million in issue if we don't get re-rated and we just stagnate into the future. I am changing my DRP to 100% at this stage to get cheap shares or I should anticipate the dividend (risk yes) and go for buying up now at these prices because after the year end it re-rates and then the DRP would be at higher prices. These hard questions over the weekend - wow need to relax.