About the brokers re-rating it Anne....Linwar is the one...

About the brokers re-rating it Anne....

Linwar is the one producing the reports for PCG at the moment, and they predicted FY'06 EPS at 9.1cps - and that was revised only a fortnight ago after the lower tax rate was revealed!!! Given they got about 7c EPS in the first half, even a poorer second half of, say, 5-6c EPS would mean FY'06 EPS is going to be something closer to 12c EPS, at least.

So, Linwar got taken to the cleaners!!! They will have to produce a new report on PCG to maintain their credibility, and we'll see it in about a month's time on the company's website hopefully.

To all people waiting for PCG to be re-rated on a PE it deserves (more like 20!), i say patience - it'll happen eventually. In the meantime, just keep topping whenever the opportunity arises like i will.

BTW, i loved the conservatism shown in the presentation! That's probably one reason why it isn't fetching higher prices - because the management aren't concerned with overselling the business to unrealistic expectations. That's a good thing as far as i'm concerned.

One more thing - I loved the bit about the continued foray offshore PCG announced. It means two things - offshore revenues from the middle east = lower taxes, and some seriously long-term, lucrative work to happen over the next 2 or so years.
PCH are the biggest reource construction materials players in the Caspian and the fact that they've appointed "key regional managers" for the Arabian Gulf, Kazakhstan + Asia means they are getting really serious about nailing some large offshore work.


Overall, i'll say it again, there is not a single flaw i can find with this company - it's all blue sky. The only limitation on profits and growth (it appears) is how much capital expenditure they want to undertake - which at the moment is almost entirely funded from spare cash flow. Management it seems don't like debt and are taking a steady-as-she-goes approach, and that's working fine for now so why change it?

Go PCG :)