Paragon Care Ltd ("PGC") - Healthcare upside!!

[h2so4]

With EPS down after all those acquisitions something is seriously wrong.

Aquisitions were paid for with cashflow plus a few shares.

[Joshuatree]

A few shares being re 50% increase by my sums.Paid too much by the looks.

[percy]

A few shares being re 50% increase by my sums.Paid too much by the looks.

It certainly looks that way,at present,however it does look as though eps growth will be over 15% pa for the years 2018 and 2019,which will in turn mean the PE will be lower than the growth rate,which is very positive..

[macduffy]

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.

Whatever happened to the " Earnings growth twice P/E" rule, percy? Or does that only get counted against full year results?



But seriously, I rather like the PGC story and this might be the time to buy a few.

[percy]

Whatever happened to the " Earnings growth twice P/E" rule, percy? Or does that only get counted against full year results?



But seriously, I rather like the PGC story and this might be the time to buy a few.

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].

[h2so4]

Whatever happened to the " Earnings growth twice P/E" rule, percy? Or does that only get counted against full year results?



But seriously, I rather like the PGC story and this might be the time to buy a few.

You might be right macduffy.

[Snow Leopard]

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

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

[macduffy]

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!

[h2so4]

I wouldn't count on there being any change to PT s valuation.
Ps I bought some too.

[Snow Leopard]

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!

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 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.




Best Wishes
Paper Tiger