Well, its seems we are now well and truly set up for a shocker first half.
Sort of intriguing that PGC felt the need to really make sure the market knew that the first half was going to be weak, when we had already been forewarned. So it seems it is going to be very weak indeed. Clearly trading since the AGM has not picked up. Hopefully a lot of this is already built into the share price. But it aint necessarily so.
On top of 'more seasonality than normal', resulting in falling revenues (a very bad look), we have one offs that will drop the statutory EPS. All a bit of an ugly look.
So we now have to buy: 1) the onging roll-up story, 2) the X factor of the Midas software, and 3) the potential for a larger acquisition as alluded to at the AGM. All at the same time that revenues are falling for the first half......
In the meantime the PGC share price will be weak, the Feb 1st half result will be ugly and then there will be a long wait for the second half to come in, which will show whether the first half really did have more seasonality than normal.
Gosouth
PGC Price at posting:
81.0¢ Sentiment: None Disclosure: Held
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