Thank you for your post,as I was unsure what to make of the acquisition.
Printable View
Results FY 2016 presentation. NPAT $7.5 mill Rev 93.4 mill EPS 5.6c . cash-flow good.S/P up re 13.5% to 79-80c:)
Download Document 3.09MB
A cracker result.!
Nice result guys - NPAT and EPS impressive - i see they were over $2.50 , 10 years ago in 2006 - dont know the history, perhaps CR and dilution , expansion cost , development cost etc however looks like they heading in the right direction again
Yep happy to be on board with this one
Likewise. They have proven adept at integrating well-priced acquisitions for good ROC, and are on offer for a low valuation with good cashflow and a strong balance sheet, with an integrated platform that appears to provide a competitive advantage. Well worth a look for anyone who has yet to buy.
pleased I got a few at 70c, tempting to get a few more now following a bit of profit taking. Things shaping up really well, nice cash balance building too
Pumping along nicely today up beyond 80c
Good volume too
Ladies and gentlemen,boys and girls,we have lift off.!!!!!
New all time high.!!!!..88.75 cents.
Nice! And EMC over $1 - a good day on the ASX :)
Twas AGM day today.
Punters obviously loved what they were told [click for presentation]
Up 5c to 91c
Best Wishes
Paper Tiger
With "target stock turnover between 5 and 6 times,and strong growth in FY17 across all key metrics" it would appear we remain "well positioned."..lol.
They've built a great track record of consistent growth with high ROC in a fragmented industry, with a long runway so plenty more to come - we're well positioned indeed :)
Nasty looking drop over last couple of days on big volume.
Anybody got any ideas or conspiracy theories?
Best Wishes
Paper Tiger
No theories.
A little concerned as PGC is my largest Aussie holding.
Half year result due early February.I expect a solid result.Will sit on my holding until then.
So the sp is falling on no news [that I know about].
They appear to me to have their business model right.
The move to consummerables has improved cash flow.
The balance sheet is strong.
The acquisitions have been soundly based.
T/A wise my KWadvisor would say.... "CULL".
I made some enquiries to the company re the fall.
They are not aware of govt and/or other changes in the industry that will negatively affect them.
The business continues to trade well, as usual the second half will be stronger than H1 and current order book supports that view. So in summary, nothing for them to disclose to the market
Thanks for sharing your enquiries mark thats very reassuring. Maybe its just an insto like AEF selling down/out. Holding for now, defensive and growth in one.
ps hope your entering the ASX comp this year:)
My largest holding. Nice to see most of my favourite posters are on the same page - literally!
Thanks also Mark100, have missed your posts. I hope you see your comp picks too.
PDF Half year out Rev and profit up re 42% .NTA down to - 8.6c.
EPS 2.2c share down a little.Expectations fore 3-3.5c share!!.Shares diluted from 110.7 mill to 163.5 mill shares.
1.1c interim div.
Punished s/p down 13% to 71c atm.Was a strong sentiment fave.
Im usually too slow to interpret and bail promptly like that but luckily for me its lifted and i got 75c; ok from a 60c buy-in but still a disappointment; sa la vie in the investing game. Good luck to holders for an improved EPS performance.
Looks like FY EBITDA will be less than my guess and thus, probably, so will be all the other important numbers.
I will do a new valuation and then make a decision from there.
But the good news is I am off to see The Lego Batman Movie in a while, so overall a happy day.
:)
Best Wishes
Paper Tiger
Offcourse I was bitterly disappointed with the result.
The real test is eps growth.PGC's eps were down 4%.A lot riding on a very good second half to improve stock levels and cash flow.
From research we see a PE of approx 13 while eps growth going forward should be over 15% for the next two years.
Because of my liking of the sector I have decided to hang onto my PGC shares in the meantime.
With EPS down after all those acquisitions something is seriously wrong.
A few shares being re 50% increase by my sums.Paid too much by the looks.
EPS growth twice PE is my goal.Don't get too many goals,but live in hope.
EPS growth above PE I am happy to hold.
EPS negative as per PGC I am very unhappy.
PE twice or three times growth I sell.
The rules are the same,it is just me,who has moments of indecision.
Like you I like the story.We have been there before with EBO,but with 17 acquisitions EBO never had lower eps.[that I can remember].
So I have a current valuation of $0.733 and a one year forward valuation of $0.77.
Current SP within a Tiger's whisker of the current valuation so will keep for now.
I can recommend the movie.
Tonight it is the MPO playing the Symphony Fantastic at the Twin Towers.
Best Wishes
Paper Tiger
PGC hit your one year forward valuation of 77c today, Tiger. I bought a few last week so would appreciate another, higher one year number - if you can so oblige!
:cool:
I wouldn't count on there being any change to PT s valuation.
Ps I bought some too.
Many years ago I had to get my house valued and when the guy came round he asked me what value I wanted !
There is a 'proper' valuation of $1.06 :huh: kicking around but I would expect that to be revised down at some point.
I hope you bought at or below my current valuation. I would not want you to overpay.
:mellow:
Best Wishes
Paper Tiger
Let's just say "Very close to your current valuation".
Good hunting!
:)
macduffy and h2so4 your leadership is an inspiration to us all.
Market movers.
I note 4-traders ebitda forecast for F17 is significantly higher than PGC guidance
The analyst still nt got around to redoing his numbers?
From guidance it looks like a decent drop in eps for F17 v F16 - all those new shares.
Since the last post it has gone ex-div to the tune of 1.1cps, down to $0.70 and is now up at $0.80.
I do not know what is with Ozzie shares but they are far more 'interesting' than Kiwi ones.
Best Wishes
Paper Tiger
Very positive and easy to read analysis from Curran out recently: http://www.paragoncare.com.au/wp-con...7-CurranCo.pdf
Thats great but generally the small and nano cap mkt is dead in the water atm; nothing much is happening in my stocks anyway.PGC mkt cap $116 mill maybe a big small. Hows it going for you/s?
Bit of life in PGC's share price over the past few days.
Shaw and Partners have initiated coverage with a 12 month target price of 95c.
http://www.paragoncare.com.au/wp-con...2017-07-04.pdf
Neat.
Another of my 'I am sure I know I better than the market about this share' where the market is currently deciding to come round to my way of thinking.
Only hope that it continues that way or that the market gets really optimistic :).
Best Wishes
Paper Tiger
What a great start to the reporting season, with PGC delivering the goods.
eps growth of 11%.
Strong cash flow.
End of year cash holding of $18.6 mil, means another acquisition must not be far away.
The substantial increase in the divie is the icing on the cake.
Ys, a strong result, percy, reflecting in the 8.6% jump in the shareprice today!
Did you see the inclusion of "expand the sales footprint to Queensland, South Australia and New Zealand" as a new initiative in the presentation? Potential competition for EBO there.
Missed that as I missed the presentation.!!
Thanks for altering me.
EBO used to sell their beds a few years ago.
Now you can laugh at this,: I asked EBO CEO, Patrick Davies, at last year's EBO agm about PGC.Said he had never heard of them.!!!
Maybe he will now.?!!!...lol.
No,not luck.Maybe because I have owned Ebos for over 25 years I could understand what PGC were capable of achieving,and were targeting to achieve.Yes PGC did not meet the market expectations,but those acquisitions were "game changers"and are now showing their true worth.
I spoke with PGC's CFO a year or two ago, and we discussed the very significant difference ,of selling consummerables rather than equipment.At that time PGC were moving away from being mainly an equipment seller to a consummerable seller.I seem to remember their target was 70% consummerables.Seemed high at the time,but they achieved it.This meant lower stock holdings,better stock turns and improving cash flow.They have a long way to go to get any where near the stock turns EBO are achieving,yet PGC's eps growth is a lot higher than EBO's,and I think it could be double EBO's over the next two or three years,..
So PGC's eps growth looks to be between 10% and 15% pa while their PE ratio is under 15.
EBO's eps growth looks to be between 5% and 8% pa,and their PE ratio is over 20.
Big difference.I now have twice as much invested in PGC than EBO.after my recent sell down of EBO..
They still look pretty good value to me. Sector, track record, management, diversity of products and customers, and locked in contracts make them pretty low risk; while still sufficiently under the radar to offer an undemanding valuation.
Only seen the SP jump & the comments here so far but I will be happy with the result for now.
BW
PT
Nice to see Pie Funds have joined us.
sp at 94 cents is very pleasing too.
Looking forward to you regaining your speech, Tiger.
All comments/views on PGC interest me.
;)
Monash Investors thinks that PGC looks particularly cheap now.
https://www.livewiremarkets.com/wire...arly-cheap-now
Just noticed that PGC only have the option to enter an Australian bank account number under Link's payment instructions. I'm signed up for the DRP so it's no problem yet, but if they suspend the DRP in future I'll have to figure out what to do.
Has anyone had the same issue? Can they be contacted to request a cheque or will I need to set up an Ozzie bank account?
I too have DRP where avaliable .Where I get Aussie cheques I give them to my broker, Craigs who deposit them in my Craigs Aussie cash management a/c.I use this a/c to take up rights issues.I also have a Craigs NZ cash management a/c, and I transfer funds between the two when required.
I dont think you can open an Australian bank account without having an Australian residential address. Percy's system sounds good.
I don't know about opening one today.A few years ago on ST, posters said they had opened one,but had to go to Australia to do it,while others said they could do it from here.Whether they gave an Australian address or not I do n't know.I know a few people who have an Australian bank a/c, but they seem to run into issues moving money from NZ to there in time for SPP [ share purchase plans] or rights issues.I just give Craigs the paper work and they do the rest.If I don't have enough funds in my Aussie cash management a/c they transfer from my NZ cash management a/c.
I really don't think I would bother investing in Australia,without doing it via Craigs.Too much wasted time and hassle,particularly trying to deal with Aussie share registries when they make mistakes..
ps.I am sure most other brokers offer the same services as Craigs.
It comes at a cost.You pay higher transaction fees,but well worth the peace of mind.Some times I find I am in a paper war,so any way I can save the hassles I do so.Aussie dividend cheques I give to Craigs and they go on my Aussie cash management a/c with free funds avaliable in three days.
Although I don't hold PGC, I do hold another aussie company ILU, and they also post me an Australian cheque, which I take to an ASB bank branch, and they don't charge me a fee to do so (although I'm sure they make a little bit of money off the exchange rate - ANZ do charge a fee, $20 or something to bank an aussie cheque)... with ASB it will take quite a few days to come through, up to 21 I think it is, but I don't mind. ASB Securities also helped me with a few share registry changes/transfers and due to it being not alot of cash at the time, they did it fee free (which was very nice of them). It is not a full service broker, but I am very happy with ASB so far. (just some thoughts from me!)
The share price today is where it was a year ago,yet the company is in a lot better shape.
Still a modest PE at 13.63 and a yield of 3.55%.
The agm presentation reads well.and the outlook is for positive growth.
I like the sector and like the company.
I fully agree!
There are some excellent posts by Gosouth and JG on HC.Both attended the agm.
picked up a few today. Conversation with the HC crowd relating to the seasonality of H1 earnings, but I'm happy with a bit of short term price weakness!
last hours for 2018 competition entries
The latest small bolt on acquisition of South Australian, Anaequip Medical,makes sense.
For a couple of decades I used to have Aust div cheques sent to me, and then I would send them to ASB Securities who would cash them and put in my A$ FCA account with them. But it's slow and a hassle.
So I opened accounts with CBA - goalsaver and a CDIA. Now I trade on Commsec and all Aust divs and sales proceeds go direct into CBA. (I'm NZ citizen and resident). I have internet access to CBA/CommSec and Comm Sec has lower brokerage on Aust shares than ASB Securities so all good. There are no fixed fees on the CBA accounts either. I can do SPPs easily and quickly thru CBA. The only tricky bit is that moving money between ASB and CBA is a little costly. ASB Securities charge A$14 for an IMT and CBA charge A$10 to deposit IMTs, so I try to limit IMT transfers between the two. Better solution: Just get all your existing Aust holdings bought via ASB transferred into CommSec's sponsorship, then no more A$ transfers from ASB to CBA as I sell all via CommSec (and buy thru CommSec as well). this works much better for me - less cost, less hassle, and faster. PS. I still use ASB Securities in NZ and UK. They've always been pretty good to deal with,.
if I understand what your saying correctly, your trying to send $ between your NZ and AUS accounts? - have you tried using an app like Transferwise? international money transactions are much cheaper and easier if you simply avoid the banks. it was very handy when I was living in London and wanted to send money from my HSBC UK account to my ASB bank account in NZ (or visa versa). the rates you get are 'fair' and the fees are low. there is a small limit (think it is about $5k) on each transaction, so it wont suit you if your a high-roller but you can do multiple transactions each day and totally fit-for-purpose if you only intend to do small parcels between the accounts. might be worth looking at eh.
curious to know how you set up an AUS account being an NZ resident (don't you usually need a residents address in the country?)
filthy
What is going on?
Share price slipped, albeit temporarily, into the 74's today...
If only I had cash to buy
TALK is PIE are wanting to sell out before a weak result. They went under 5% recently and MAY have an 8 million share overhang still to unload.
PIE possibly learned a lesson or two from Trilogy about positions in stocks with relatively low turnover (compared to holding-size). Interesting they'd take such a haircut given they bought in at levels up to 93c. In my opinion their fund performance in recent quarters seems to be lagging a bit too....
Personally I'd think with it currently trading mid 70s that a slightly softer result was already fully priced in.
Yes they have telegraphed a lower result. we will see what PIE do .
The current strong down trend continues.
From a broker's research dated 30/1/2018.;PGC has continued its aggressive acquisition program with the completion of three bolt-on acquisitions in recent weeks.Earnings are strongly skewed to the second half.
Share price target $1.12 ie 45.45% higher than today's 77 cents,and that does not include dividends.
Have recently dipped my toes into this one, I have liked all that I have read so far, will be interesting to see their results. Current price looks good for a top up personally.
Trading halt for a cap raise, looks like another sizable acquisition is on the cards.
https://www.asx.com.au/asxpdf/201802...7kggkppcf1.pdf
Or vice versa, someone has seen the value in PGC and offering a premium for them:)
Ah my bad, thanks for clearing that, I should have read the details of the Halt, was busy this morning with other purchases (should have actually kept some $ for the cap raise if offered ....)
Contemplating my minor "toe in the water" shareholding in this Company and their offer currently open to retail shareholders at A$0.725.
Fully underwritten, so I assume that's why share price got down to, but not below the offer price of A$0.725 during the market turmoil of the past few weeks?
Institutions took up their allocation of A$44.8m. Now it's the retail holders turn with $25m being sort.
Entitlement documents are in the post... I was not over confident about the efficiency of delivery given the 'shortish' offer period (closes 26 Feb), spent sometime this afternoon finding my personalised offer document on the Paragon site... now navel gazing as I consider picking up my entitlement and whether I attempt to add to that holding by applying for up to $25,000 (that's 34,482.75862 @ A$0.725) additional shares.
Thoughts??
Percy... I assume you're in boots and all??:cool::cool:
No.
The first half was not up to what I expected.
A lot of talk they will catch up in their second half.
With a lot more shares on issue, I can't see see that happening.
I very much doubt an acquisition ,or organic growth increasing their eps.
Therefore I am sitting this capital raise out.
That said I did hear the intos were scaled heavily.
I did point out to the company NZ shareholders do not get enough time.
NZ post blames Australia post,Australia post blames NZ post.!
Last cap raise they did, the company secretary got their share registry to email me the form,which I then emailed onto Craigs,who took them up for me.
ps.
The first half was not up to what I expected.
A lot of talk they will catch up in their second half.
Yes, I did note what their first half year report said and have extracted and inserted below:
PRINCIPAL ACTIVITY
The principal continuing activity of the consolidated entity is the supply of durable medical equipment, devices and consumable medical products to hospitals, medical centres and aged care facilities.
Revenue and Earnings
The Company’s revenue was $52.5m for the six months ended 31 December 2017 (down 4.5% over the prior corresponding period). EBITDA for the half year was $5.4m (down 19% over the prior corresponding period) and NPAT was $2.8m (down 24% over the prior corresponding period). This result is in line with the Company’s 1H18 revenue and earnings guidance provided on 27 December 2017.
As advised at the Company’s Annual General Meeting held on 22 November 23017 earnings for 1H18 have been impacted by greater seasonality in revenues (compared to 1H17) and one-off operating expenses, which led to a $1.2m decline in EBITDA this half compared with the comparable period in 2017. The Company’s gross profit margin of 39% remained unchanged, with lower revenues leading to a $0.8m reduction in EBITDA. Operating expenses increased by $1.1m as a result of:
• Increased investment into future growth – including investments into new Services & Technology businesses and the restructure of sales team to drive regional penetration; these investments were partially offset by wage decreases in other business units • The establishment of a new South Australian warehouse and recruitment of new management team
The Company expects to deliver strong full year earnings, driven by organic growth initiatives and recent acquisitions with the second half of the financial year stronger than the first half, given particularly pronounced seasonality in revenues this financial year. The Company expects a strong slant to 2H18 given historical trends and the seasonal nature of hospital procurement.
Paragon maintains its FY18 revenue guidance of $125m to $135m, and EBITDA guidance of $18m to $19m. Paragon will provide a further earnings upgrade once it finalizes recent acquisitions
A lot of talk they will catch up in their second half.
With a lot more shares on issue, I can't see that happening.
I very much doubt an acquisition ,or organic growth increasing their eps.
It will test how good their acquisition diligence and purchase pricing is!
Therefore I am sitting this capital raise out.
Fair enough, now I've sorted out my personalised entitlement document and can make payment from my Aussie bank account using Bpay, I've got flexibility to make up my mind and action when and if it suits.
My Entitlement form arrived in the post today! I'd already decided not to average this one down so hadn't bothered to go looking for it on the registry website. A poor show though, whether on the part of the company, the registry, AusPost or NZPost, to manage to deliver the mail, the day after the issue closed!
Thank you.
I have just emailed Andrew Just telling him my entitlement paperwork has not arrived,and pointed out it was a continuing bad story for PGC's NZ shareholders,and perhaps he could have a word with chairman Shane Tanner,as ZNT,of which Tanner is also chairman,gave us plenty of time,which meant I subscribed for ZNT,but not PGC..
ps.I did email Andrew Just when the capital raise was announced pointing out NZ shareholders seldom received the paperwork before issues closed.