Paragon pgc, page-4

IMO PGC is a classic example of how the market focuses on EPS (and its flow through to the PE ratio) for the purposes of valuation.

It is well and good to highlight a company's growth in market position and its growth in revenue, EBITDA and NPAT, however if in the meantime if it has blown out its shares on issue through multiple large placements and share acquisition payments, then the EPS does not go anywhere. 

At its AGM several years ago PGC stated that they would be prudent managers of the share base to protect existing shareholders, but they haven't walked the talk. The calculation of the statutory EPS for PGC will be negatively impacted for some time to come due to the massive increase in shares on issue.  PGC have continually referred to the growth in 'Proforma' EPS during numerous acquisition announcements and how much organic growth is occurring, but the reality is that the mud in the water will stay there for quite some time. The full year result in February will be somewhat of a yardstick for where things stand but I suspect even that might not be clear air.  It doesn't surprise me at all that the share price is going nowhere.

Gosouth