Ann: PME signs A$40M - 7 year contract with Intermountain Health, page-12

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woollydog

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14/01/21

21:36

Post #: 50179503
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Originally posted by Downanout: ↑

"Goldman Sachs, for what its worth, forecast EPS to rise to 39cps over next 3 years, which would mean PE over 80 at today's price."

Gold in Sacks based their forecast on PME only signing $33m worth of 7-year contracts per year.
Today's announcement brings the total new contracts signed, to $93m with more than five months still to run in the current FY.
Gold in Sacks have acknowledged each of the new contract win this FY but they have not made any significant revision of their assessment.
In other words, PME have won nearly as much much in the first six and half months of this FY as GS were forecasting that they would win in the next three years.

As for the high PE, unlike most high PE tech companies, PME makes a profit, pays a dividend and funds its own rapid growth without debt.

I particularly liked this bit from Sam Hupert's interview.

"So, whilst we have been very successful in converting end-stage opportunities such asIntermountain and the other deals we have announced over the past 6 months, our pipelineremains strong with a range of opportunities across various stages of the cycle and acrossmultiple segments of the market."Thus, it appears that despite the recent contract wins, the PME pipeline is still bulging like Popeye's biceps.

It's also encouraging that PME have won a major contract with a bread and butter non-educational hospital system in a previously untapped part of the US.
Thus, this win alleviates the concern that perhaps PME can only sell to the educational institutions because it is only such institutions that are willing to pay the premium for the best technology.
Even better, PME have pulled this off amid the Covid upheaval in the USA.

Anyway, today's action sure put a smile on my dial
It's not often that I have a six figure day, and when I do, more often than not, it's the wrong colour.

Cheers

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thanks for your thoughts
cheers

PME Price at posting: $36.53 Sentiment: None Disclosure: Not Held
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