1. New management onboard so they have not as yet entrenched themselves and will oppose any early takeover as not much in it for them personally. Plus exiting management has lots of knowledge. So with all the moving parts, to pay a premium you need to know that what you are buying is secure - I think in say 24 Months it may get there.
2. Still a few contracts in earnout and not yet bedded down. The market is waiting for certainty that all of these have been successfully integrated - Not yet again. Think the longest one is still about 30 months away.
3. Too many moving parts need at least 1 year of stabilised earnings in my opinion.
Right now my valuation is over $1.00 but I would not pay that unless I knew what to expect from all the moving parts. Exciting, potentially a great business but as yet not yet proven. Its potential is still much higher so the out layer is that someone decides to offer say $1.15 and takes the risk.
Personally I am not sure what I want - I don't want to pay CGT and want the dividend flow but after all the roll-ups where will the growth come from...
PGC Price at posting:
79.5¢ Sentiment: None Disclosure: Held
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