Ann: Investor briefing transcript, page-2

It's nice to see the level of disclosure made by PNC in here, I congratulate them for being bold and putting very useful information out there for shareholders or potential shareholders. I don't have to calculate this stuff for myself now (and making broad assumptions probably getting it quite wrong!). It would be nice if CLH and CCP were also as bold. CCP has a history of under promising and over delivering so that is a bit of a known in some respects, I would in particular like to see similar for CLH to see how their portfolio stacks up and whether there is value to be had there as well. Anyway for a PNC thread I digress...

At the end of the day the information they are providing is the result of their IP and engrained business activities and in my opinion as a shareholder doesn't give away "trade secrets", it is the effect/result of such things. At the present share price (circa 2.48-2.50) PNC looks like its trading on roughly 5.8-6.1% FY18 fully franked dividend yield (or 10% gross for a 40% tax payer) and an EPS of well below 10x. That 10x PE is on a one year forward P/E basis and for an entity that has been growing at the rate of PNC seems quite cheap. Looking at topping up as the price has dropped ex-div, especially if it drops any further into the $2.40s (there's a lack of depth in the order book presently so not out of the realm of possibility).

Bring on FY18. Critical to maintaining value accretive will be the liquidation momentum as that will be critical to sustaining revenue, earnings and the growth profile. Particularly given a decent customer base who is paying with a low default rate - a material shock in that default rate is something to keep an eye on and given potential macro-economic headwinds exist needs to be watched carefully. Hopefully the investment in analytical capability and increased collection headcount will help drive faster customer location and cash flows from purchases and underpin the general growth and profitability! Looks like back end of FY18 some of the new activities will start to become more earnings accretive which hopefully is a positive for FY19 in particular.