PGC has long contracts, which allows for pretty accurate forecasts into the future. I suspect we can take the return to profitability, revenue and profit growth, and dividend commencement to be indicative of their current and expected future contracts - ie, nothing out of the ordinary. Business as usual should get us there.
For a dividend of 1 cent/share (say), the company only needs ~$320,000 in profit. So, if we take a dividend as representing 50% of profit, that's around $650,000. Round it up to an easy million - which they can easily forecast - and 1 cent/share looks feasible.
Given that the Directors own a good chunk, and the major shareholders are all closely related to the company, achieving stable dividends should be seen as a priority. This is good for us!
20 cents/share is cheap. I haven't bought as many as I would like around these levels. If we are to be honest, however, I suspect it'll still stay around here for some time yet. I don't expect it to go back to the mid 30s for a while longer. Now is a great time to get in.
Definitely curious to hear from anyone who went to the meeting.
PGC Price at posting:
21.0¢ Sentiment: LT Buy Disclosure: Held
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