ladies and gentlemen could the selling be exhausted, page-34

I am of the belief PGC need acquisitions and revenue growth rather than dividends at this stage in their business life . A few years ago the chairman stated the company had a vision to lift annual revenue in 5 years towards $50 million and lift the return on revenue from a low 8% at the time towards a 15% mid term ambition

As I understand it they are half way there , about 25 million annualized revenue in 2014/15 is expected and the EBIT margin appears to have risen to 12%.

It is a bit of a catch 22 If they pay higher dividends PGC is cash poor to make EPS positive acquisitions and needs to use the stock which probably goes up in the short term on increasing dividends . If they do use the stock buying these businesses dilutes existing holders.

I prefer that PGC keep the dividends a little lower ( .01c per share for now ) and buy new revenue with cash or debt and increase dividends after they reach the goal Mr Tanner spoke about ( $ 50 million revenues at 15% EBIT margin gives a $7.5 million bundle of cash)

At that time they will be able to pay down the debt needed to make the lift in revenue form $25 million to $50 million , make further acquisitions with shares when they are $1 not 30c and pay higher dividends later.

If somehow they can end of with 75 million shares and have $50m /7.5m we should be over $1 in 2 years time and our returns for a pretty low risk company will be substantial , higher dividends make that a difficult assignment even with the smart board and management team they obviously have built from the bottom up over the last few years.