Hi guys. I've been out of PGC for a while now. I sold half my...

Hi guys.

I've been out of PGC for a while now. I sold half my holding after the January 4C at 46.5 cents (which was obviously too early) and the second lot after the half year results at 56.5 cents. There were certainly times I thought I'd made a mistake and was considering plunging back in, but I held to my original plan to take profits at those levels and wait for the expected lull from March to July to play out.

I agree with Joe that the stock is probably one announcement away from returning to a strong uptrend, however in the absence of this announcement I have felt PGC has some headwinds. I won't go into detail but I believe they are:

1. The lower AUD will put pressure on sales
2. Extreme pressure on state and federal health budgets also puts downward pressure on sales
3. A highly favourable comparison to 'prior corresponding period' helped the half year results but may not be as strong in the full year results and could disappoint the market
4. Lingering memories from last year's relentless decline from 45 cents to 25 cents at around the same time could force the hand of impatient traders.

I thought my strategy to sit on the sidelines until June-July was ruined when the new substantial holder reared their head. However since the announcement on March 26 they have not yet added another 1% to their holding (1% is approximately 674,000 shares). With volume of over 2.9 million shares since that date it seems they may not be accumulating further.

For now I remain happy to wait, albeit with the understanding a surprise announcement could go against me, and will look to reenter over the coming months between 40-45 cents.

I could be wrong but that's my current position.

Cheers guys