Hi, @caketin I think you are correct - all the bad news is out there. The engine - which must be the product range is a large and very good one as I see it. There are flagship positions - The WA business for one, Scanmedics, and the Ophthalmic business all seem to have leadership positions. You have operations with a national footprint and an NZ base to add to that.
The reality is that it could all come together and change has a 50% chance of being good. New eyes often see things that others don't. The strange thing is that in reality, it's always a combination of factors that determine the success or failure - much like sporting teams in fact.
I think its fair value but you only need a few things to go correctly for it to be up by 50% from here.
The negative for me is that the style of the organisation seems to be less inclusive of shareholders - however, that is also a function of how large this has become. It's probably;y the reason I am better at smaller companies...
Midas (which I criticise as being still in development and should not be part of a distribution roll-up) was explained to me as a huge opportunity and that one day it could command a valuation equal to PGC ( at the time I think the Market cap was around $80m). So there is a lot of players on the board that could deliver.
The dividend is great as well. Also, remember that with each year the debt drops so the returns get better as the debt is paid down.
I fully understand your position investing for others.
PGC Price at posting:
44.8¢ Sentiment: None Disclosure: Not Held
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