The stock has no following amongst brokers and rarely trades volume so be careful if you are looking for a quick trade .
The board is excellent the CEO was with an ex fin services business recently sold to IOOF for over 100 million , the chair was on the board of Mayne group and has major contacts in the healthcare space , and i believe Mike Newton was the CEO of another major listed company that was built up and sold off , Symex.
IMO a reasonable current value for the company is about 14-15m ( about their revenue ) but their focus will be on revenue growth and then paying dividends once the option money gets rid of the debt that the qly shows they are paying back at quite an accelerated rate from cash flows .
They stated at the AGM they had a 3 year plan to get to $50m revenue at 15-20% EBIT margins , so far they have done everything they have promised and as such I will be exercising my full PGCOA option entitlement .
Really depends how many options take up their entitlement , lower the better IMO , if say 50% do , that will give them 33 m shares on issue .
I think as soon as the option date has passed the stock will recover and return to a more reasonable market cap .
Caketin on that basis on current numbers with no premium I calculate on the 14m / 33m shares + or - = about 40c a share .
If they do get the 50m revenue in 3 years the stock could be many multiples of that ...I certainly hope so and good investing
PGC Price at posting:
22.0¢ Sentiment: LT Buy Disclosure: Held
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