I think it really depends on how the 2nd half of the year progresses in 4 or 5 respects
1. Can they increase revenue in NSW and Qld 2. How the Jan 1 acquisition of LR Instruments is transitioned 3. How much they have increased the Aust manufactured products as a % of income 4. Whether or not they can secure some follow up sales to the hospitals like Alfred , St Vincent's etc 5. With lower debt , can they further increase revenue towards the 3 year target to 50m and the margin on gross sales towards the 15% targets they set last year
At a $20 m market cap at 35c , the EBIT needs to be over $2m
I sense it will be well above that and might come close to 2.5-$3m , if that does occur the rebound towards the old high of 50c will occur as we get closer to June 30 and the time to report earnings , or advise the market of a profit upgrade
I like their chances and think it makes good buying on this short term decline , hopefully you jump on this time around
If the EBIT was to be flat and the 5 factors I am looking for disappoint , and EBIT is in the range 1.5m I suspect 33c might be retested
PGC Price at posting:
35.0¢ Sentiment: LT Buy Disclosure: Held
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