Summarising Fedexpress's message.On the front page of The west...

Summarising Fedexpress's message.

On the front page of The west australian newspaper business section, PCG group was the preferred W.A sub $2.00 stock from a number of stockbrokers.

"A WA industrial company with operations as far afield as Kazakzstan, Queensland and Qatar has emerged as a favourite among stockbrokers looking for good value amid the resources boom.

After being asked to pick their best five WA stocks under $2, the brokers' most selected stock was the Malaga-based, international scaffolding operation PCH Group, which yesterday announced a 46 per cent rise in annual net profit.

Reflecting the State's minerals and petroleum focus, the majority of the picks were heavily focused on the resources sector either in exploration, production or associated service sectors.

PCH is also hoping to benefit from a booming petroleum sector and has a major scaffolding contract for the Woodside Petroleum-operated fifth LNG train.

But the full revenue effects of that project and a major product in Singapore are not expected to kick in until next year, and the group has other major projects in WA and in the Caspian Sea that are winding down.

PCH managing director Jamie Cullen said yesterday the group had expanded into new markets, including Victoria, Queensland, Qatar and Thailand, and this was expected to provide benefits in 2007-08, when growth would resume.

Net profit rose from $9.16 million to $16.16 million in 2005-06, while sales surged from $81.5 million to $121.1 million. "We are building into the next decade, not just having a thumping 2007," he said.

After releasing the result and giving the warning about a growth slump this financial year, PCH shares fell 7 to 63.

The stock peaked above $1 in March after rallying from around 66 a year ago.

Patersons Securities director Murray McGill said PCH's forthcoming growth hiatus had been well flagged to the market and the stock still had excellent growth potential.

He said it was a typical example of a company that had benefited from WA resources boom.

Mr Robinson said investors should look beyond short-term weakness and seek genuine growth stocks.

"Buy when things are down, not when they are up - as long as there is a long-term picture there," he said."


Cheers.

Geoff