Bought into PRG early 2012 around 2.05 when it was severely undervalued, and a bit surprised to see it end up back at this level without any negative announcement. So I decided to dig around and see what I missed. Looks like it's caught in the general sell-down of the mining services. although the business case of PRG itself is still sound.
Three revenue stream according to FY 12 annual:
Property maintenance EBIT 26.8 m
No news. turnpoint acquisition should be a small positive. Citi rated target sp post the event 2.39.
Resource EBIT 28.3
Total Marine's major contract Kupe Field Gas just posted an upgrade, which should be a good news for PRG.
(http://www.proactiveinvestors.com.au/companies/news/31104/new-zealand-oil-and-gas-and-origin-post-134-upgrade-to-kupe-gas-and-oil-reserves-31104.html)
Construction & maintenance side: no news. the valuation on this sector is generally down lately, which is the only reason I could think of for the recent price fall. considering it's only a small portion for the group, is it oversold now?
Workforce EBIT 11.3
No news. considering this one of the more stable subsector in mining services.
What do the rest of the audiance think?
near 15% sp fall for what?
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