Sorry Caketin: Well I think PGC has bad luck this is not the first time the market around it has not helped a CR. From doing more and more research on the companies they have acquired I get excited. I always like to make contact with people that know the people in those companies - I have found a few - they all speak highly of the companies. MediTron seems to have a symbiotic relationship with Scanmedics so that fits very well. Western Biomedical has a great position and should do well by taking the products that PGC can offer into that market and obviously the reverse is true as well.
Had the punters taken up their shares it would have been good - I think it can only be the reality of the upheaval within the markets.
The metrics of these deals are unbelievable - if you were prepared to be paying north of 67c before these deals its just crazy that you are not prepared to pay more today.
Paragon Care is acquiring three highly complementary businesses:
– Pro forma FY15 EPS increases 50% from Pre-acquisition EPS (before synergies)
– Leverage ratios are improved – Pro forma FY15 EV/EBITDA is 7.9x**
– Pro forma FY15 PER is 11.0x**
– All three acquisitions take Paragon Care further into consumables
– Share of consumables to rise from 30% to 70%
– Consolidating products into the Paragon Care offering
The PER has gone down from 21 we were prepared to pay before the deal to 11 - that says it all.
These prices are far too low but like most here I am full up and will wait until Mr Market gets its head around these factors. I think it will be End February 2016 - The interim will have a larger audience and that will create interest.
Still trying to get good info on Designs for vision so if anybody has contacts please can you give us feedback on them.
PGC Price at posting:
63.5¢ Sentiment: None Disclosure: Held
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