Hi FirsovaI was most disappointed with how my PGC investment...

Hi Firsova

I was most disappointed with how my PGC investment turned out. I had built up a large position in the options and was looking forward to being part of a good success story.

However there were a couple of factors that convinced me it was time to move on.

1. You mentioned the strong growth in FY10 and Fy11. This was all growth by acquisition. It hid the fact that revenue from the core PGC business (Axishealth) was actually declining. This raised a red flag for me even after the apparently strong Fy11 results.
2. Fy11 and Fy12 results need to be considered in the context of the strong Aud across these periods, leading to an inflated gross margin. Any decline in the Aud will put pressure on the margins.
3. Unless PGC can acquire a commodity type supply business, revenues will continue to be lumpy and subject to the whims of govt spending, and will remain marked down by the market for this .