FY18 results were around 10% under expectations,
FY19 forecast, which includes 10% growth, brings us back to where we should have been.
But now we will have an extra 17.5% shares being issued with no additional revenue, other than the ones previously mentioned.
That leads to some serious discounting of this years eps and hence valuation.
I'm not too concerned as:
1. Capital sales will always be lumpy,
2. The share price has been factoring in some earnings downgrade since the low first half result was flagged at the agm.
3. The capital raising will provide lower gearing and the capacity for further acquisitions,
4. The capital raising will help move us toward entry into the ASX300 index.
PGC Price at posting:
74.0¢ Sentiment: Buy Disclosure: Held
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