latest broker report , page-2

Firsova, thankyou.

For others, an excerpt but I recommend you to read the whole report, it's very encouraging.

Paragon Care has the potential to deliver high returns to investors over the next few years as it pursues its acquisition-based strategy to build scale and a national footprint in the fragmented health and aged care service industries. The company is positioned in an attractive high growth market, with considerable opportunities, which we expect to attract increasing investor interest over the next few years.

Health care is expected to be a high growth sector well into the future as government spending rises sharply to meet the demands of a rapidly ageing population and catch up for considerable under-investment over many years.
With annualised revenues now approaching $20 million, Paragon Care is well on the way towards achieving $50 million revenue with EBIT margins between 12% and 15% by 2014. The three prongs to the growth strategy are to maximise market growth opportunities from the existing product range, to acquire more distribution agencies of complementary products and to undertake further acquisitions. Over the past three years, the company has been successful in implementing this strategy which has led to an expansion in opportunities to achieve its objectives.

Whilst the option overhang will markedly dilute earnings per share we believe that anticipated earnings growth over the next two years will be more than sufficient to ensure significant share price growth.