trading, page-49

To answer your questions:

I have never been a fan of the Chairman (don't really know him so that may well be the reason) but like most here had never heard of A J before he took the job. I have stated before that I was concerned about his ability to make the transition from a large corporation to small/ medium. One of those core competencies is communication and more importantly - to your stakeholders and once again to your shareholders who have, especially in this company, stumped up a lot of money.

I forgave the lack of updates after the March 2019 one as I understood that the elephant in the room was the sale of the legacy businesses. When they announced the sale on 1 July 2019 I thought that we would see results no later than the previous year's result of 28 August. I had however hoped we would see it earlier as the story needs to be told especially the new story excluding the legacy bits. I wanted to see these changes reflected.

However, since the 1st of July, the only information was the change of the corporation principal business and registered address. I would have thought that that was a golden opportunity to outline the reason for the move and the synergies expected. So since the sale announcement and the address on 2 July, there has been no communication from this company not even to set-up a conference call.

There has been nothing not even a date to publish results. Even SDA which had a shocker had a whole bunch of announcements - conference call times and released their results on 27 August. They had a large acquisition for this reporting period as well. Since 1 July there are no less than 7 announcements clarifying contracts and funding even management updates and a letter from the Chair. The market caps are both between $150m and $200 m but I grant you that SDA has been a lot higher.

So as I was waiting for results from both and a few others to crystalise my thoughts on them I have been eagerly awaiting results. PGC is very high on my list of possibles because I trusted management and felt they over-communicated rather than kept you in the dark. So whilst I may not be a fan I thought that ST style must influence management and expected the information flow to be transparent and timeous.

I have tried to be patient and then on the morning of the last trading day in August still no results. My post was out of frustration, disappointment and unhappiness, given the journey I have had with this company.

So no I have not written it off but if we are to invest in this company I would have to understand why the behaviours are as they appear to be.

Right now I get the impression that shareholders are being disregarded. How hard is it to put out an announcement that details when you are going to do something. Is my impression that they have the (shareholders) money and until they need more they don't feel the need to be proactive in communication incorrect or right on the money. If that is the case then it has to start at the top. Really that saddens me as I would like to find a space for PGC in my portfolios but its how you treat people that is the most important thing as I see it.

So whilst it is on my watch list - it's getting to be a much smaller chance of becoming an investment and almost all of it can be laid at the door of communication and behaviours. In contrast, there is a small company ACF that hasn't had a great run share price-wise and yet they have released their results last night had a conference call this morning and had a very frank discussion about their business and answered questions from anyone who was on the call and all shareholders could register.. So if they can do it why is PGC not doing it after all they are writing off around $30 million of equity is the disp[osal of the legacy businesses.