This company (IMO) is undervalued. Based on current earnings and projected earnings there is value in this business based on the PE of 7.
As commentators have already suggested, it could also be a takeover target. Given no debt, underlying positive EBIT and no CEO, somone may find this business tasty as an add on. Commentators have based on a PE of 7 and come up with a price of 11 cents. This is based on companies projected earnings and current actual of remaining 14 businesses.
Announcement of a new CEO should perk this company up. Wonder if we will be paying the same amounts as we paid the deaprting CEO. Clearly he did a good job, but hey to sell businesses to pay debt is not rocket science (although I do not underestimate the mamouth taks he did and believe he did deserve the $ as he brought the company back from the brink).
The only issue holding back this company is their inability to pay dividends till 2018. This will stop various funds jumping in. However if they can continue to make say $20m of profit, and accumulate for 6 years, that should result in a health company.
Hopefully we will hear news shortly regarding the 1h, and perhaps annoucement at same time re CEO.
PGA Price at posting:
$1.08 Sentiment: Buy Disclosure: Held
