One of my biggest mistakes was not following on with CAJ. I bought into CAJ when it was 4c. a lowly MC of around 20mil. Similar to when I bought PGC.
CAJ current PE is 65. It has shown strong growth but its profit is still only 8.8 million. People are pricing it for rapid growth. Perhaps deserved? perhaps over-shot? who knows.
Our current profit was 0.6million for the half, giving us an annualised PE of ~25. Given the expected EBITDA rise in the second half, and knowing there are relatively fixed costs of sale, like directors renumeration and some D&A expected. I'd say our profit may go up, pushing current prices to around PE20.
for a growth company, PE20 is low. Especially in a low-rate environment.
We could see $1, or PE~40, by christmas just by proving NPAT growth in consecutive halves and meeting revenue forecasts.
I'm holding this one longer term, as I see an opportunity to not repeat my mistake of selling CAJ for 12c.
PGC Price at posting:
52.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)