Revenue for the first quarter of 2016 was up significantly on the first quarterr of 2015. EBITDA margins appeared weak but they were weak in 1Q2015 as well so possibly just seasonality, and should improve
Even when you plug in conservative assumptions such as sales growth in line with GDP and current margins I struggle to get a DCF valuation lower than 88c. To reach a value of 63c you would need to assume a decline in sales/margins.
Initially I was expecting ABI to raise their offer price or a competing takeover offer.
However now that they have 46% both seem unlikely. An extension is probably the go.
Bit of a change in tune from management since the offer, wanting to keep their jobs post TO?
Will be stoked if they just stay a "key shareholder" but doesn't seem likely.
Cracks me up how someone sold their shares today for 61c, considering they could have sold yesterday for 63c...
PGR Price at posting:
61.0¢ Sentiment: Hold Disclosure: Held
