Next leg up

The quarterly gives me great confidence PGC is ready for its next leg up.

Within the quarterly we can read that the company is in the final stages of due diligence on an acquisition that when added to the current revenues will see PGC surpass $30 million revenue in 2015

The synergies are not discussed , but we do know the PGC chair 2 years ago said they had a medium term target of $50m in revenues and a profit target to move from 10% to 15% on revenue

If we say they are over half way , and the revenue is 30 million and the profit number is 12.5% , we are looking at almost $4m in profit in 2015.

This sector is very rewarding for companies growing revenue and improving its ROE , with many trading at a forward PE of 20

At a 50% discount to that multiple , that's only a $40 million market cap , nothing for some of the big private equity firms or health care aggregators .

PGC could easily move to the next leg of Caketin chart and re test 0.50 cents again