I think the assumption that PGC will
make the same EPS in the 2nd half of 17FY as they did in the 2nd half of 16FY does not have any basis. This is because the 2nd half of 16FY 'artificially' benefited from the low weighted no of shares on issue used in the EPS calculation. That aberration will not be repeated this year.
I am not aware of how much seasonality is in the PGC business - but I recall there is a lot as the hospital sector spend is driven heavily by their budget timing. So yes 2nd half 17 should be much stronger than the first - but I struggle to think it will be as good as you suggest (but hey great if you are right).
Also PGC I think are looking for big acquisitions so I would not rule share placements out. At the last AGM they specifically included a resultion to allow an increased placement capacity. Only time will tell on this.
Growth over 3 to 5 years? Who am I to know but the board appear competent, they have an ambitious growth target and the sector will
Continue to benefit for a long time from the aging population demographic. I am a long term holder as long as the path seems clear and they don't trip up. There are no certainties in this game.
Cheers
Gosouth
PGC Price at posting:
76.0¢ Sentiment: None Disclosure: Held
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