Ann: Acquisition of South Australian medical distributor business, page-18

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caketin

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01/02/18

15:33

Post #: 30742894
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Originally posted by afterlife ↑

PGC for me is a long-term conservative investment, got in late 2014 for a good price at the time.
I do like the health sector and i am ok with growth by acquisition if done with DD and sound strategic planning, So far so good.

I have no illusion about PGC and will not compare their PE to other health sector companies with strong IP portfolio and unique technologies such as CSL, COCHLEAR, or RESMED.

PGC is more like a growing wholesaler in the medical field (which is fairly fractured,) purchasing small suppliers at favourable EBITDA multiples and integrating it into the larger group, creating scale and diversity through acquisition and becoming national with their large offering and strategic expansion.

I always remind myself to be objective in my investment to prevent disappointment due to exaggerated
expectation. and i always welcome constructive eye opening feed back.

in the case of PGC when i compare FY17 Financial performance to the outlook for FY18, i notice slight improvement on revenue ( 117 to 125 mil) , NPAT was 10.3 mil, expected 10.5 -11.5 mil, and EPS 6.2 c will probably be the same due to slight share dilution. so not much growth year on year in this case.
we had a great jump the previous years. we seem to be consolidating before the next growth phase ( maybe) depends on some factors within the economy and the company. the company pays DIV at around 4% yield a year.

at SP of 77c and EPS of 6.2c we are on PE of 12.4 if we add the 20mil +/_ debt we have to the 128 mil MC we end up with an Enterprise value of $ 148 mil for a 11 mil NPAT, PE is @ 13.5

With the first half year profits downgrade to around 3 mil ( less than 30% of total ) i do not think that PGC is overly undervalued, its the market previous expectation and the cream that is coming off the top of the SP right now.

I am a buyer at the low 70c.

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Very sage view I think afterlife. Breaking support at 79c wasn't good, there's even a chance it might just dip below 70c, but like you I'm here for a long time, and have been since the low 20s. It's been a great stock to have in my portfolio with stellar growth these last few years.

PGC Price at posting: 78.0¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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(20min delay)
Last 43.5¢		Change -0.010(2.25%)		Mkt cap ! $720.0M

Open	High	Low	Value	Volume
43.5¢	45.0¢	43.0¢	$135.0K	308.4K

Buyers (Bids)

No.	Vol.	Price($)
4	35242	42.0¢

Sellers (Offers)

Price($)	Vol.	No.
44.0¢	21031	1

View Market Depth

No.	Vol.	Price($)
4	35242	0.420
1	21686	0.415
1	20000	0.410
1	7500	0.405
3	59992	0.400

Price($)	Vol.	No.
0.445	18546	1
0.455	10000	1
0.460	26862	2
0.465	777	1
0.475	7142	1

Last trade - 16.10pm 28/10/2024 (20 minute delay)

PGC (ASX) Chart

Ann: Acquisition of South Australian medical distributor business, page-18

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Ann: Acquisition of South Australian medical distributor business, page-18

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