Ann: S&P DJ Indices Announces March Quarterly Review, page-51

Hi Joewolf

Since you addressed the thinking out loud scenario to me i will share my opinion

1. I agree EPS is likely to be around 5 cents per share
2. I think the dividend will be 40% of EPS , so suitable for a growth company and underwritten to preserve cash , but enough to shut up the Aussie hungry dividend pack.
3. I think the 4% dividend number is only because the share price is under valued , if the company paid out 80% of dividends i.e. 4 cents per share a $1.00 share price would be 4%
4. Buy backs are a good idea however the instos tend to think they are used because management have run out of ideas and acquisitions , which is the wrong message for PGC because they have not stopped growing far from it
5. Whilst we are consolidating a massive industry we are hitting the radar of more and more large companies , i do believe whilst the business is seeing revenue and ebit growth of over 100% PGC is definitely a takeoff retarget when it trades at the current multiples

Also just talking out loud