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

[steve fleming]

While a very large number of small-cap resource stocks have experienced multi-bagger returns over the last few months, there are still some very nice opportunities among small-cap industrials.

i.e. PGC- market cap: $4.5m

Successfully recapitalised and restrucured earlier this year.

PGC have accumulated over the last year a portfolio of PROFITABLE businesses in the fast growing aged care/ health sector.

- a specialist aged care Financial Planning Consultancy business
- a specialist aged care employement plcement business
- a specialist aged care OHS consultancy business
- Axis health- a leading Australian supplier of Durable Medical Equipment http://www.axishealth.com.au/about.php

Expected FY10 turnover of $10m+

Per the annual report last month "As a result of the successful transformation and repositioning, the Company is expected to deliver in 2010, an operating profit and positive cash flow for the first time in the Company’s history."

Industry experienced and reputable directors now own 40% of PGC.

Further aged care/ health sector acquistions being investigated.

PGC currently 0.021
PGCOA currently 0.007

[steve fleming]

Paragon have gone live with their new website http://www.paragoncare.com.au/

There is now a (commissioned) research report on PCG that provides a nice summary of the company http://www.paragoncare.com.au/file/258 (http://www.paragoncare.com.au/file/258)

"Paragon Care has the potential to deliver high returns to investors over the next few years, as it pursues its acquisition-based strategy to build scale and a national footprint. This will be underpinned by recently acquired profitable core businesses which will support an earnings based valuation for the first time in its history.

The company is positioned in an attractive high growth market, with considerable opportunities, which we expect to attract increasing investor interest over the next few years."

Market cap is approx $4m.

Nobody knows about this company.

Only people currently buying heads are the directors.

I was lucky enough to get another 1,000,000 PGCOA this morning.

[Corporate]

Paragon have gone live with their new website http://www.paragoncare.com.au/

There is now a (commissioned) research report on PCG that provides a nice summary of the company http://www.paragoncare.com.au/file/258 (http://www.paragoncare.com.au/file/258)

"Paragon Care has the potential to deliver high returns to investors over the next few years, as it pursues its acquisition-based strategy to build scale and a national footprint. This will be underpinned by recently acquired profitable core businesses which will support an earnings based valuation for the first time in its history.

The company is positioned in an attractive high growth market, with considerable opportunities, which we expect to attract increasing investor interest over the next few years."

Market cap is approx $4m.

Nobody knows about this company.

Only people currently buying heads are the directors.

I was lucky enough to get another 1,000,000 PGCOA this morning.

Hi Steve, have you got an recommendation on where to kick off my research into PGC. THe options look very tasting with the long expiry. What is there exercise price?

[Corporate]

Ok dont' worry about the option question. Just seen that it is 2c. Interesting company from my research so far.

[POSSUM THE CAT]

Steve Fleming, & other Investors please take note that the age care industry will collapse when the aged that need care wake up to the fact. That if they shoot a politician plead guilty and end up in jail they will get better care than most can afford for free. I have a brother in aged care state subsidized by a large amount. But would have far better living conditions in Jail.

[steve fleming]

Update today:

- Operating cash flow positive for the first time;

- each business unit performing ahead of budget, operating profitably and are generating positive cash flow;

- Each business units is capable of delivering sustainable double digit growth from better marketing, new products and services and expansion into new markets;

- increasing spending on the hospital sector, and in particular a high level of capital works programs, which drive equipment spending.

[steve fleming]

2.5 cents was taken out on the close today.

This is kinda significant as PGC has closed at 2.5c SEVEN times over the last 5 months, but has not once broken through.

Will next week be the break out, or will it fail again?

[Lizard]

Hi Steve,
Looks interesting, though I'm wary of the "bolt-on acquisition" growth strategy after AMA!

My calcs suggest the market cap is already twice the value of their total payment for acquisitions to date less net debt. Though it's quite possible they could add that kind of value to a small business if they are canny operators.

Maybe worth up to 5cps over next 12 months if all goes well though?

[steve fleming]

Hi Steve,
Looks interesting, though I'm wary of the "bolt-on acquisition" growth strategy after AMA!

My calcs suggest the market cap is already twice the value of their total payment for acquisitions to date less net debt. Though it's quite possible they could add that kind of value to a small business if they are canny operators.

Maybe worth up to 5cps over next 12 months if all goes well though?

Hi Liz,

Good points - the AMA disaster should not be forgotten.

(With hindsight!!) it is apparent that AMA (and also BLU & CQU) expanded too quickly, with too much debt, without paying appropriate respect to integration and controls. But just as importantly, the businesses they acquired were generally too disparate, such that sufficient synergies betweeen businesses could not be acheived - which is where you really create value in acquisitions.

PGC to date has expanded slowly/conservatively with a real focus (at least with Lifetime Planning & Tender Living) on synergies.

In relation to their acquisition costs:

Axis Health: $3.2m
Lifetime Planning: $600k
Tender Living: $270k
Ascentor: $300k
TOTAL: $4.4m

Enterprise Value = m/c ($5.4m) + net debt as at Sept (=$1.8m - $1.2m cash)
So EV =$6m

If they can do EBIT for the 6 months of say $500k, + can demonstrate some nice growth, a 5c target is not demanding.

[Lizard]

Thanks Steve. Slight differences in our calcs - I missed Ascentor in mine, but figured their total debt now $2.3m and cash $1.1m. Might have misread their borrowings (how did they manage to borrow $1.85m last qtr anyway? A 3 yr arrangement secured over the assets of Axis Health seems generous given level of goodwill, so perhaps a good sign as to the underlying strength there?)

On the positive side re the EV:Book, a high ratio is an advantage in purchasing further businesses, since it will make it less dilutive. So as you say, the trick is in finding a balance between growth by acquisition and getting a massive attack of indigestion.

[steve fleming]

Hi Liz - yes you are correct re debt. Total debt is the $450k debt facility at year end + the new $1.8m AxisHealth acquisition facility.

Also note the strong director buying over the last few months, including Tim Blance aquiring 24mil shares in the June placement.

The first placement (8mil shares) announced at the time of the AxisHealth deal (28 April) was to the husband of the Lifetime Planning Manager (Sue Woodruff).

[steve fleming]

2.5 cents was taken out on the close today.

This is kinda significant as PGC has closed at 2.5c SEVEN times over the last 5 months, but has not once broken through.

Will next week be the break out, or will it fail again?

3c - got the break out - on low volume though.

[Lizard]

Yes, I saw that. Well done Steve! :)

[steve fleming]

There is an order of 500,000 on the bid at 0.029.

last trade at 0.027.

how long it takes for this order to get sold into will give an idea as to the near term strength of PGC

[drillfix]

There is an order of 500,000 on the bid at 0.029.

last trade at 0.027.

how long it takes for this order to get sold into will give an idea as to the near term strength of PGC


Huh??? not sure I actually get what you mean here steve.

No offence mate, but this health stock seems more like a mortuary stock..lol, As in it doesn't really move, does it?

Is there something behind the underlying lack of movement in price or something?

[steve fleming]

Huh??? not sure I actually get what you mean here steve.

No offence mate, but this health stock seems more like a mortuary stock..lol, As in it doesn't really move, does it?

Is there something behind the underlying lack of movement in price or something?

:)

Drilly, this is a patience play...

nobody knows about this stock...

there were 3 (only three!) posts on PGC on hot copper for the whole of 2009!!

When people find out about it the price and liquidity increases, so you buy in earlier before it runs....

Its a very different strategy than buying the latest h/c pumped hot stock.

The fact that someone is sitting there with a 500k order above the last trade price is positive.

if it sits there for a while, it will show that all the sellers under 3c have gone.

If it is sold into quickly, then there is still going to be reasonable resistance at 3c.

[STRAT]

I see strong resistance at $10 :D:D:D


Ten Year Chart

[drillfix]

Thanks Steve, your always great at explaining things.

I dont really follow HC P and D stocks, ADO is one which I have tracked for reference only and my educational needs. Have not traded it. Had an order in to buy but did not get filled. Then left it as its a dumper now.

I have some longer term holding stock so its not all just day trade and it dont move in 5 minutes then I am out....lol

Interesting all the different ways of people on this forum, I must say :)

[drillfix]

I see strong resistance at $10 :D:D:D

Ten Year Chart


LOL STRAT, your a card mate, love it~!

[COLIN]

:)

Drilly, this is a patience play...

nobody knows about this stock...

there were 3 (only three!) posts on PGC on hot copper for the whole of 2009!!

When people find out about it the price and liquidity increases, so you buy in earlier before it runs....

Its a very different strategy than buying the latest h/c pumped hot stock.

The fact that someone is sitting there with a 500k order above the last trade price is positive.

if it sits there for a while, it will show that all the sellers under 3c have gone.

If it is sold into quickly, then there is still going to be reasonable resistance at 3c.

Steve: You'll be pleased to hear that I have just bought 500k PGCOA at 1c. And the presence of a buyer of the heads at 3c has given me added confidence.
I like the fact of the long-dating of the options.

[Lego_Man]

Steve: You'll be pleased to hear that I have just bought 500k PGCOA at 1c. And the presence of a buyer of the heads at 3c has given me added confidence.
I like the fact of the long-dating of the options.

Ditto, though slightly less than half of your holding. The options have a fair bit of leverage inherent in them at the present time so i'm comfortable with a small "stick them in the drawer" type punt.

[percy]

Steve: You'll be pleased to hear that I have just bought 500k PGCOA at 1c. And the presence of a buyer of the heads at 3c has given me added confidence.
I like the fact of the long-dating of the options.

I read Steve's competion picks and added pgc to mine.
Then I had trouble buying some .tried pgcoa but ended up with some p"gc at 2.4cents.Thanked Steve somewhere.
I have ebo in nz.MD mark waller told me a lot of guys coming up to retirement want to sell their medicsl supply business"s and they areeasy bolt onto EBO<s
business.I thought may be the same with PGC with Directors and management well connected.Now we are in there ,we will look to the future with high expectations!!

[steve fleming]

I read Steve's competion picks and added pgc to mine.
Then I had trouble buying some .tried pgcoa but ended up with some p"gc at 2.4cents.Thanked Steve somewhere.
I have ebo in nz.MD mark waller told me a lot of guys coming up to retirement want to sell their medicsl supply business"s and they areeasy bolt onto EBO<s
business.I thought may be the same with PGC with Directors and management well connected.Now we are in there ,we will look to the future with high expectations!!

Interesting comments re EBOS Percy.

I first bought shares in EBOS about 15 years ago, when it was controlled by Peter Kraus, and pretty much only did dental supplies - it has come a fair way since then.

Paragon (through AXis Health) actually supply EBOS:

"EBOS Healthcare has built strong relationships with major medical suppliers to provide high quality equipment at competitive prices specifically for the Primary sector:

Axis Health for instrument trolleys and consulting room equipment"


http://www.eboshealthcare.com.au/content/view/14/28/

[h2so4]

Good result today. I'm impressed.

[percy]

Impressed and pleasantly surprised.EBO also doing well.

[COLIN]

Impressed and pleasantly surprised.EBO also doing well.

Yes, happy with my PGCOA - and am also back into EBO.

[percy]

steve and colin
no thread for EBO that i can find so as you both have EBO you may be interested to know Craigs have EBO as a buy and have increased their target price from $5.99 to $6.64.

[COLIN]

steve and colin
no thread for EBO that i can find so as you both have EBO you may be interested to know Craigs have EBO as a buy and have increased their target price from $5.99 to $6.64.

Thanks for that info, Percy. Over the years, I have been in/out/in EBO several times. Market can be thin at times, though.

(There is in fact a thread for EBO on NZX - "Ebos Limited EBO". I see that I stated in December that I was ending my love affair with EBO for good - well, memories are allowed to be short, in affairs of the heart, and I am back in again.)

[steve fleming]

New Gordon Capital research report out on PGC.


http://www.paragoncare.com.au/file/273


Forecasting FY10 EBITDA of $1.1m

PGC now really need to get out there and promote the PGC story more...the brr interview today is a good start but a pretty short interview...

[h2so4]

Congrats Steve :)

Really like the PGC story. Great 1HY profit. If it wasn't such a small fish I would put the house on it....... well maybe half the house. :t_up:

[h2so4]

PGC now really need to get out there and promote the PGC story more...the brr interview today is a good start but a pretty short interview...


'Paragoncare' users name posting on HC?????????????...............hmmm

[steve fleming]

Congrats Steve :)

Really like the PGC story. Great 1HY profit. If it wasn't such a small fish I would put the house on it....... well maybe half the house. :t_up:

'Paragoncare' users name posting on HC?????????????...............hmmm

Cheers h2!

At least someone is posting about PGC on HC now! Months had gone by without any posts!

But i see "Paragoncare" also posts on other stocks, so maybe they just like the name.....

Financial and execution risk in relation to PGC is starting to reduce as it acheives each milestone, however, you are right as with any small-cap, you still have to pretty careful.

[h2so4]

Cheers h2!

At least someone is posting about PGC on HC now! Months had gone by without any posts!

But i see "Paragoncare" also posts on other stocks, so maybe they just like the name.....



Yeah maybe nothing in it.

What I like about PGC is that it has no capital expenses, so its in a position to increase, maintain or reduce debt levels as required. Plus their cash flows look excellent.

[COLIN]

I remember someone on ST rubbishing the idea of making anything on this one, because of its miniscule size and lack of trades - probably on Steve Fleming's "Long-dated options" thread. Well, I am already up 60% on my PGCOA purchase of 500k of PGCOA a few months ago, and there is still a long way to go before exercise date. This won't turn me into a member of the billionaire class, but every bit counts.

Don't despise small things!

[steve fleming]

Hi Colin, yes nice gains on PGC/PGCOA last week.

Probably time for an annoucement regarding the new acquisition that PGC have been alluding to for the last 6 months.

At least PGC aren't rushing into any purchase though.

Probably will do a capital raising (placement + SPP) with any acquisition.

[steve fleming]

Strange 4C released today – very good to see the strong operating cashflows, but some of the numbers have me baffled.

The previous 4C for the 6 months to December recorded receipts from customers as $4,922k (Item 1.1)

The 4C released today stated additional receipts for the 3 months of $2,142, which would suggest total receipts for the 9 months of $7,064k.

However, Item 1.1 of the 4C recorded year to date receipts of only $5,741k.

And there are other discrepancies as well.

I am seeking clarification from Mark at PGC.

[h2so4]

Strange 4C released today – very good to see the strong operating cashflows, but some of the numbers have me baffled.

The previous 4C for the 6 months to December recorded receipts from customers as $4,922k (Item 1.1)

The 4C released today stated additional receipts for the 3 months of $2,142, which would suggest total receipts for the 9 months of $7,064k.

However, Item 1.1 of the 4C recorded year to date receipts of only $5,741k.

And there are other discrepancies as well.

I am seeking clarification from Mark at PGC.

Did you get this sorted?

[steve fleming]

Some support for PGC in the Australian:

http://www.theaustralian.com.au/business/wealth/it-pays-to-think-small-sometimes-top-200-stocks/story-e6frgac6-1225875670008

"Bearing all this in mind, we asked the small-cap experts for specific tips.


In the healthcare sector, Gordon nominates Paragon Care (PGC), which distributes goods such as beds, couches, cabinets and trolleys for healthcare facilities. Paragon's recent fourth acquisition will boost annualised turnover to about $16m. The company achieved a maiden profit of $197,000 in the December half.


Ancilliary goods will be a vital part of the healthcare growth story."

[COLIN]

Thanks for that link, Steve. I'm happy to retain my PGCOA for the long haul.

[steve fleming]

Liquidity among microcaps is pretty much non-existant at the moment, so forced/impatient sellers can potentially create some good buying opportunities.

On that note, it is interesting to see that PGC directors have been the buyers in 15 of the last 16 PGC trades.

In fact over the last couple of months, there have been 7 change of director's interest notices notifying of director purchases, plus a couple of directors subscribed to the recent con note issue.

My understanding is that none of the PGC directors are exceptionally wealthy, and they all have a large degree of their personal wealth invested in PGC and are happy to continue to invest in PGC.

[h2so4]

15 of the last 16.................hmmm?

[steve fleming]

I had a couple of PMs asking about PGC.

I have actually had some discussions recently with Mark Simari, the MD of PGC and who comes across as a very good operator, and remain pretty excited about PGC.

The queries I had with Mark basically were around FY11 profit guidance and stock liquidity.

Mark’s comments were along the lines that PGC is presently tracking very well and the integration of the 2 recent acquisitions has gone better than expected. He believes the PGC board almost has the necessary comfort to release profit guidance to the market.

It sounds as though Mark is spending a lot of his time visiting brokers and fund managers, doing his best to get the PGC story out there.

1.5m PGC shares traded last Thursday, making it the biggest volume day in over 4 years – so looks like slowly but surely the story is getting known and liquidity is on the improve.

This is the year that PGC really have to deliver, and from the sounds of it, they have started the year well!

[percy]

Thanks for the update Steve.

[shasta]

Thanks for the update Steve.

Thanks again Steve for bringing this to our attention, liquidity is a bit of an issue but surely it won't stay around 3c for much longer

[COLIN]

Yes, thanks Steve. I remain a patient holder of PGCOA, but wondering when the miracle will happen.

[percy]

The Rapini Pty Ltd.,acquisition should be a good fit.I went to their web site www.rapini.com.au / .Yes wire shelving and basket systems;however I did enjoy the Mortuary,fridges,Freezers and trolley section.....With an aging population great growth prospects!!!!!!!!!

[steve fleming]

The Rapini Pty Ltd.,acquisition should be a good fit.I went to their web site www.rapini.com.au / .Yes wire shelving and basket systems;however I did enjoy the Mortuary,fridges,Freezers and trolley section.....With an aging population great growth prospects!!!!!!!!!

Hi Percy,

I agree, another good acquisition

On rough numbers, sales would be running at $20m- $25m p.a. now.
At a 10% margin, EBITDA is at least $2m, and growing quickly,
Market cap remains at $6m, but EV probably closer to $10.

Very subjective but if a mining/resources spec had this good a fundamentals it would be trading at multiples of what PGC is.
The liquidity / hype / interest among resources means they trade at such a premium to micro-cap industrials.
Micro-cap industrials remain unloved with minimal liquidity.

You have to be in to win, though, which is why I have pretty much have given up on industrials to focus on resources.
I still however have a major soft spot for PCG, and now have a top 10 shareholding in PGCOA.

[COLIN]

Hi Percy,

I agree, another good acquisition

On rough numbers, sales would be running at $20m- $25m p.a. now.
At a 10% margin, EBITDA is at least $2m, and growing quickly,
Market cap remains at $6m, but EV probably closer to $10.

Very subjective but if a mining/resources spec had this good a fundamentals it would be trading at multiples of what PGC is.
The liquidity / hype / interest among resources means they trade at such a premium to micro-cap industrials.
Micro-cap industrials remain unloved with minimal liquidity.

You have to be in to win, though, which is why I have pretty much have given up on industrials to focus on resources.
I still however have a major soft spot for PCG, and now have a top 10 shareholding in PGCOA.

Steve, I'm greatly encouraged by your comments. I have held 1 mill of these little crumbs for a while now, but after seeing the muted market reaction to the Rapini acquisition I was fast coming to the conclusion that they didn't seem to be going anywhere and I would be better to quit, although it is not easy to unload that size of parcel in one chunk and I have held off meantime. However, your words give me cause to pause.

[percy]

On the bottom of page 64 of PGC Financial Report for the year ended 30 june 2010 ;
Unquoted equity securities,
Rapini Pty Ltd hold 6,000,000 options and 600,000 convertible notes. Interesting .I wonder where these end up after the takeover.NB, rapini takeover only just announced.This holding was at 30th June.

[steve fleming]

On the bottom of page 64 of PGC Financial Report for the year ended 30 june 2010 ;
Unquoted equity securities,
Rapini Pty Ltd hold 6,000,000 options and 600,000 convertible notes. Interesting .I wonder where these end up after the takeover.NB, rapini takeover only just announced.This holding was at 30th June.

Hi Percy,

Yes, i noticed that note in the AR.
Looks as though Rapini subscribed to the majority (600,000 of 1,025,000) of the convertible notes issued by PGC earlier this year.

I beleive that PGC is purchasing the business assets of Rapini from Rapini P/L, so after the acquisition completes, I would think that Rapini P/L will hold 2,275.000 convertible notes (600k + 1,675m).

[percy]

Hi Percy,

Yes, i noticed that note in the AR.
Looks as though Rapini subscribed to the majority (600,000 of 1,025,000) of the convertible notes issued by PGC earlier this year.

I beleive that PGC is purchasing the business assets of Rapini from Rapini P/L, so after the acquisition completes, I would think that Rapini P/L will hold 2,275.000 convertible notes (600k + 1,675m).
Steve,
Thank you for your reply.I think it is very positive that the sellers of businesses to PGC,are prepared to accept PGC shares as part payment.It is even better that they want to hang on to them.
The fact that Rapini brought into PGC,before PGC brought Rapini ,shows to me they respect each other and know l each other"s businesses well.
Also thanks for your replys on other threads.

[steve fleming]

Biggest ever trading volume today (3.4M shares). No crossings interestingly.

AGM tomorrow at 11am - directors will give a trading update, which should be pretty positive.

[buns]

Flemo

Thanks for bringing this one to my attention - I have finally taken a small possy in this one.

I've followed your long dated option strategy for a while now, but have held back on a lot of these micro caps just because I don't understand some of these businesses. This one - easy, and I think things are stacking up nicely for PCG. Good management, with very favourable conditions/demographics.

[percy]

Bit of movement [upwards] in both the ords and options today.

[steve fleming]

Bit of movement [upwards] in both the ords and options today.

Hi Percy, yes some nice interest building.

I am in pretty regular contact with Mark Simari, and he continues to be busy promoting the PGC story to brokers and fund managers in order to generate a bit more interest and liquidity in the stock.

My understanding is that brokers have been impressed with the PGC turnaround and Management’s ability to deliver on the milestones that they say they will.

Mark is confident that it won’t be much longer before these brokers become active in the stock. Given the tight register, that is when we will see the big gains that I am after, especially on PGCOA. Maybe today is the start?

[percy]

Steve,
thanks for the update.Still a lot of time for the options to run.As I like the sector PGC are in, I am hoping the company grows,so that I convert my options to heads.

[Entrep]

Kind of reminds me of an early stage Abano Healthcare

[steve fleming]

Kind of reminds me of an early stage Abano Healthcare

Actually a really good NZ comparison is EBOS, around the mid 1990's.

Around that time EBOS was really ramping up its medical equipment product and distribution range, primarily through acquisition, whic is exactly what PGC is doing now.

The EBOS profit and shareprice growth around that time was really impressive.

From memory Eric Watson became a large EBOS shareholder around then and made a very quick large profit before selling to Rangatira.

[percy]

Actually a really good NZ comparison is EBOS, around the mid 1990's.

Around that time EBOS was really ramping up its medical equipment product and distribution range, primarily through acquisition, whic is exactly what PGC is doing now.

The EBOS profit and shareprice growth around that time was really impressive.

From memory Eric Watson became a large EBOS shareholder around then and made a very quick large profit before selling to Rangatira.

Watson was in early stages of Abano,not EBOS. Abano was rest home business to start with. Got the name wrong but ex Brierley guys had an investment company called ?? Phesuh ? or Theasus ,then Kraus gained control.Mark Waller I think at the time was the company secretary.The company market cap in 1990 or 1991 when I first brought in was under $2mil.To-day over $380mil.Waller has been in the drivers seat all this time [truely a great record.]The name came about from the merger of Early Brothers,and Oral suppies ltd,who suppied dentists.Do not know what year that was as it was well before my time. The ex Brierley boys drained the company of cash.To keep the company going Waller had to close the dental supply business,Kraus let Waller get on with the job,and let him reinvest the profits.So growth.EBO went in dental supply,then sold out,but I think they do still sauce dental equipment for the Islands.
The present chairman Rick ?? as an ex Rangaitara CEO.

[steve fleming]

Watson was in early stages of Abano,not EBOS. Abano was rest home business to start with. Got the name wrong but ex Brierley guys had an investment company called ?? Phesuh ? or Theasus ,then Kraus gained control.Mark Waller I think at the time was the company secretary.The company market cap in 1990 or 1991 when I first brought in was under $2mil.To-day over $380mil.Waller has been in the drivers seat all this time [truely a great record.]The name came about from the merger of Early Brothers,and Oral suppies ltd,who suppied dentists.Do not know what year that was as it was well before my time. The ex Brierley boys drained the company of cash.To keep the company going Waller had to close the dental supply business,Kraus let Waller get on with the job,and let him reinvest the profits.So growth.EBO went in dental supply,then sold out,but I think they do still sauce dental equipment for the Islands.

Hi Percy, Watson was definitely involved in EBOS, i recall because when he disclosed his sub. shareholding I purcahsed more EBO myself! I think he bought in when Kraus sold down his holding.

Per the following link http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=8450 , he was still a holder in 1999.

It was EBOs diversifcation into medical eqiupment (rather than just dental supply) plus their focus to Aus (also their Health Support acquisition) that drove the EBO growth. Waller has been an excellent steward.

[percy]

Hi Percy, Watson was definitely involved in EBOS, i recall because when he disclosed his sub. shareholding I purcahsed more EBO myself! I think he bought in when Kraus sold down his holding.

Per the following link http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=8450 , he was still a holder in 1999.

It was EBOs diversifcation into medical eqiupment (rather than just dental supply) plus their focus to Aus (also their Health Support acquisition) that drove the EBO growth. Waller has been an excellent steward.
Thanks for that Steve.I cannot ever remember watson being there with the 5.5% holding.I remember Kraus's holding go up and down,but never realised watson was there. He never had any influence,or control. Ian Urqhart was a large shareholder early on as he was friends with Maurice Ryan who went on to manage EBO in Aussie until Philip Burden gave him the push.

[steve fleming]

Bit of movement [upwards] in both the ords and options today.

Nice to see a move finally above 3.5c today, with a decent bid at 3.6c.

PGCOA up 40% since start of February, with some goods bids today at 1.4.

Hopefully a good half yearly will drive a re-rate.

[buns]

Nice HY report

Impressive revenue when you take into account the deferred.

So many signs in there to start buying, as the growth is coming quick once PGC defrags

The benefits of scale are on the way, PGC are yet to close down the premises from these acquisitions. Integration will increase margin/lower overheads. Keen to see if this small company can pull this off - All eyes on those expense numbers in the coming periods.

Options starting to lag

[percy]

Are we talking about Eric Watson? He is the kiss of death in any company he's ever been involved in. I've lost track of the number of companies that have gone down the tubes as soon as he's appeared on the register. Interesting to see 10+ years later he's still screwing over shareholders (eg. Hanover)

SF has corrected me before,as I could not remember Watson being there.He appeared on the register,but was not involved with the company.
I tried to sell some heads to buy more options today.Had to pull out as options started to move.I have been watching for a week or so and have noticed more movement in the heads.ie heads selling at 3.8 while options 1.4 with 2 cents to pay.I would have thought should be approx heads 3.8 options; over 2 cents.

[buns]

Buyers building, and sellers not stepping up. A double bagger for those who bought early this year. I'm assuming a lot of this buying has come from ST members..

Tad annoyed as I contacted PGC with some questions around revenue (ability to retain, another division break down..).. This was quite some time ago, and have not heard back. To anyone who has got an email reply from PGC can you please PM me that address.

[Lego_Man]

Buyers building, and sellers not stepping up. A double bagger for those who bought early this year. I'm assuming a lot of this buying has come from ST members..


It's the old ST version of Buy Low Sell High: Buy Steve Fleming, Sell Snoopy

(jokes on the second part buddy)

[buns]

Just found the most in depth micro cap broker report I've ever seen.

http://sp2.actemarketing.com/CampResource/5M0X8L2NHZULG45W/1/text.pdf

[percy]

Just found the most in depth micro cap broker report I've ever seen.

http://sp2.actemarketing.com/CampResource/5M0X8L2NHZULG45W/1/text.pdf

buns,
thank you for the link.Excellent research.
I still can not work out option SP.refer my post no. 65.

[drillfix]

After skimming through that PDF, I cannot see what target price the Gordon Capital people have put on it, anybody lend me some glasses?

[percy]

After skimming through that PDF, I cannot see what target price the Gordon Capital people have put on it, anybody lend me some glasses?

No target price given.The openning sentence did state "Paragon care is expected to more than double in size over the next 2 to 3 years."
drllfix.if you go to off market discussions;most hated buzzwords,you will note I watch out for the word "significant";Well the above report used that word or "significantly " 15 times.!!!! I will leave it to you to decide if that is significant?

[percy]

Just found the most in depth micro cap broker report I've ever seen.

http://sp2.actemarketing.com/CampResource/5M0X8L2NHZULG45W/1/text.pdf

I think director Shane Tanner must have read the report as he has been buying more shares on market.Thataboy!!!

[buns]

After skimming through that PDF, I cannot see what target price the Gordon Capital people have put on it, anybody lend me some glasses?

Yep the report is more of an investor presentation isn't it? And a bloody good one at that.

It talks about PGC's market and industry more than picking apart the value of PGC itself.

The section on future possible capital raisings, and possible capital structure was exactly what I was pondering. I got to the point where I figured its not worth researching unless you are a ST holder as a small company that is going to grow via acquisition will have an un predictable/choppy cap structure until settled on a asset base. The NPAT turnaround is great, but won't be enough to go shopping with (unless your RYM and do it slowly).

I think you just need to be confident in PGC acquiring the right assets and the right price and that this strategy will work in this growing market. The preso introduces all of this, and gives that confidence.

Giving a decent SP valuation on this would be tricky unless you really know the level of fragmentation in the healthcare market. So I understand this vague ‘more than now’ valuation.

This I would like to know, how many more distribution companies can PGC acquire? Same goes for the aged services division (if you can call it that at 10%), this division I like a lot but really don’t know how they grow it easily. As they have stated acquisitions aren’t coming easy, and I can’t see that changing as the very nature of this business has lots of IP attached. I think PGC either needs to create some more services not so easily to replicate, or build a growing client base with their current ones and sell it to a developed aged care business. If they wait too long I don’t see why a large retirement services company with way more resources can’t take control, and beat PGC at its own scale game.

[steve fleming]

So I see PGCOA touched 0.026 today!

Very happy that i accumulated millions of these at between 0.006 and 0.009 over the last few years.

Sometimes i think my patience is my most valuable asset!!!

[Corporate]

So I see PGCOA touched 0.026 today!

Very happy that i accumulated millions of these at between 0.006 and 0.009 over the last few years.

Sometimes i think my patience is my most valuable asset!!!

Well done Steve. Can I ask, how do you go about finding your stocks?

[steve fleming]

Well done Steve. Can I ask, how do you go about finding your stocks?

No rocket science really.

I do a lot of searching by various criteria, ( ie http://www.sharetrader.co.nz/showthread.php?8326-Profitable-Micro-caps-%28Revenue-greater-than-10m%29 ) focusing on market caps under $10/$20 mil / i follow certain directors/shareholders, and i just try and read as many company annoucements as I can.

I like to think that i have built up my skills and knowledge and market intuition to a level that i back myself in relation to opportunities in the market that others are not willing to take. Sometimes it takes me weeks or months to buy into one stock, and there may not be any one else buying, but i know it will eventually re-rate.

[shasta]

No rocket science really.

I do a lot of searching by various criteria, ( ie http://www.sharetrader.co.nz/showthread.php?8326-Profitable-Micro-caps-%28Revenue-greater-than-10m%29 ) focusing on market caps under $10/$20 mil / i follow certain directors/shareholders, and i just try and read as many company annoucements as I can.

I like to think that i have built up my skills and knowledge and market intuition to a level that i back myself in relation to opportunities in the market that others are not willing to take. Sometimes it takes me weeks or months to buy into one stock, and there may not be any one else buying, but i know it will eventually re-rate.

They are no short cuts just research, research, & more research!

[buns]

Paragon's at it again

Acquiring 100% of GM Medical at $1.85m. Sizeable acquisition compared to EV. From the blurb it sounds like they are the goods, however the truth is in the pudding – I want to see the EBITDA contribution.

"GM Medical has been designing, developing and supplying world class medical products to the Australian acute and aged care market for over 9 years and we are delighted to have GM Medical join the Paragon Care group of healthcare companies.”

Also there is a cost from dilution here - Michael Rice’s shares will be issued at a nice 12.5% discount to today’s SP

[percy]

Paragon's at it again

Acquiring 100% of GM Medical at $1.85m. Sizeable acquisition compared to EV. From the blurb it sounds like they are the goods, however the truth is in the punch – I want to see the EBITDA contribution.

"GM Medical has been designing, developing and supplying world class medical products to the Australian acute and aged care market for over 9 years and we are delighted to have GM Medical join the Paragon Care group of healthcare companies.”

Also there is a cost from dilution here - Michael Rice’s shares will be issued at a nice 12.5% discount to today’s SP

I think it is an easy bolt on for PGC's Axis health, who I note are already a distributor for GM Medical.No surprises there as they will know the business.

[buns]

Wow!

Huge win! $1.45m of 'value' - I'm not sure on the Length of this contract but I think it’s now safe to assume FY12 EBITDA will Double FY11's (looking like $1 to 1.2m in total), with NPAT growing even more.

That is an EV/EBITDA of not much over 3. That doesn’t factor in the potential for other tenders or value from acquisitions.

Good buying right now.

[percy]

Wow!

Huge win! $1.45m of 'value' - I'm not sure on the Length of this contract but I think it’s now safe to assume FY12 EBITDA will Double FY11's (looking like $1m in total), with NPAT growing even more.

That is an EV/EBITDA of not much over 3. That doesn’t factor in the potential for other tenders or value from acquisitions.

Good buying right now.
Very positive and I agree FY12 looking very good.

[steve fleming]

Wow!

Huge win! $1.45m of 'value' - I'm not sure on the Length of this contract but I think it’s now safe to assume FY12 EBITDA will Double FY11's (looking like $1 to 1.2m in total), with NPAT growing even more.

That is an EV/EBITDA of not much over 3. That doesn’t factor in the potential for other tenders or value from acquisitions.

Good buying right now.

I think this announcement is more significant than any other put out by PGC over the last few years.

It proves the PGC strategy is working.

That is, the larger product range from combining the various aquired businesses makes the PGC value proposition much more attractive to customers. It proves the combined businesses can win contracts beyond the capabilities of any the businesses operating individually.

To win a high profile $1.5m contract will do wonders for the morale and confidence of the PGC directors and staff. The tendering experience and to now have this on the PGC 'resume' will assist greatly in winning future large contracts.

congratulations PGC!!

[steve fleming]

I think this announcement is more significant than any other put out by PGC over the last few years.

It proves the PGC strategy is working.

That is, the larger product range from combining the various aquired businesses makes the PGC value proposition much more attractive to customers. It proves the combined businesses can win contracts beyond the capabilities of any the businesses operating individually.

To win a high profile $1.5m contract will do wonders for the morale and confidence of the PGC directors and staff. The tendering experience and to now have this on the PGC 'resume' will assist greatly in winning future large contracts.

congratulations PGC!!

The Gordon Capital report states "Paragon Care has identified some 60 major hospital developments or redevelopments across the country over the next three to five years. This includes Royal Children’s (Melbourne), Royal Adelaide, Royal Hobart,
Gold Coast University Hospital, Royal North Shore (Sydney), Royal Prince Alfred (Sydney) and Fiona Stanley (Perth). Whilst structural costs for these projects will be enormous, fit-out costs (including the purchase of durable
goods) will be significant."

The first major tender is now secured so 59 to go!!

[Entrep]

10:1 consolidation and $0.034 SPP

http://www.asx.com.au/asxpdf/20110601/pdf/41yzs46wxxy57x.pdf

[buns]

Don't care about the consolidation, but do about the SPP.

GM Med was $1.8m?

I'm far from a financing/cap structure expert but - I figured with over a $1.1m (at Q3) in the bank, and generating around $200k from operating, they could have looked at drawing down a bit more from the $3m loan possible. This would have made them a bit tight in the short term, but should have been safe with a bundle of cash coming not long after from the options.

The discount is nice, but I don’t think the market will like this. I’ll be holding and probably taking up the .034c shares.

On the other hand, how about the timing? Just before the FY announcement, maybe it is going to be a ripper? Allowing PGC to place the SPP a lot lower.

[percy]

Don't care about the consolidation, but do about the SPP.

GM Med was $1.8m?

I'm far from a financing/cap structure expert but - I figured with over a $1.1m (at Q3) in the bank, and generating around $200k from operating, they could have looked at drawing down a bit more from the $3m loan possible. This would have made them a bit tight in the short term, but should have been safe with a bundle of cash coming not long after from the options.

The discount is nice, but I don’t think the market will like this. I’ll be holding and probably taking up the .034c shares.

On the other hand, how about the timing? Just before the FY announcement, maybe it is going to be a ripper? Allowing PGC to place the SPP a lot lower.

I have been trying to come to grips with the announcement.As well as heads I own 200,000 options.I feel this announcement has devalued the options,as well as the heads.The options with 2cents to pay have been trading up to 2.5cents.now 1.5cents. Cost to me $2,000.I was looking to convert them next may.So why would I take up the SSP.The way I see it they will/may have trouble getting option holders to convert to shares.I also hold 100,000 heads.They have/will drop from 4.5cents to 4cents.so another $500 down. I think they are wrong to do it all before the options expire.
The only way I can see me being in the money is for them to come out with a ripper result and new acquisition that is a steal.

[steve fleming]

This came a bit out of left field.

I think the consolidation is probably the key annoucement, and is obviously PGC responding to the feedback from their brokers (Baillieu's and Bell Potter).

As PGC say in the NOM, having 230m + shares on issue, it subjects the Company to a number of disadvantages including:
(a) additional share price volatility arising from the fact that the minimum permissible share price movement permitted by the ASX (being 0.1 cent) represents a higher proportion of the Company's share price than it would if the Company had a greater share price;
(b) that the Company has a far greater number of Shares on issue than comparable companies, meaning that its share price is far lower for reasons other than valuation;
(c) negative perceptions associated with a low share price; and
(d) administrative inconvenience.

The SPP seems a bit strange.
It is not underwritten, (though Baillieu will be paid a management fee of 2% of funds raised which incentivises Baillieu to get their clients signed up), so can't really see the point of it, as the GM acquisition will appear to happen regardless of the funds raised under the spp?
It only applies to PGC shareholders registered as of yesterday, so no time for new shareholders to buy in to take up the SPP.
I can't see them getting anywhere near the $2 mil max they mention, so there is going to be little dilution.

Hopefully the share consolidation drives the heads and the options follow.

[percy]

The SPP seems a bit strange.
It is not underwritten, (though Baillieu will be paid a management fee of 2% of funds raised which incentivises Baillieu to get their clients signed up), so can't really see the point of it, as the GM acquisition will appear to happen regardless of the funds raised under the spp?
It only applies to PGC shareholders registered as of yesterday, so no time for new shareholders to buy in to take up the SPP.
I can't see them getting anywhere near the $2 mil max they mention, so there is going to be little dilution.

Hopefully the share consolidation drives the heads and the options follow.[/QUOTE]

I rang Darryl Levin ,PGC's company secretary,this afternoon to express my concern that the company's action ;the SSP had destroyed option holders wealth.I pointed out that an existing shareholder who wished to buy more shares had to either pay 4.5 cents for the heads or 2.5 cents for the options[plus 2cents on conversion].Now that buyer could buy up to $15,000 of heads at 3.6cents,so options price had dropped to buyer a .006 cent.Option holders wealth destroyed.
He was surprised by my call.He was of the opinion the cash raised,the acquisition,future growth,would see the option price recover.Nice guy to talk to.Felt sorry he got a "Percy" on a Friday afternoon.

[steve fleming]

I rang Darryl Levin ,PGC's company secretary,this afternoon to express my concern that the company's action ;the SSP had destroyed option holders wealth.I pointed out that an existing shareholder who wished to buy more shares had to either pay 4.5 cents for the heads or 2.5 cents for the options[plus 2cents on conversion].Now that buyer could buy up to $15,000 of heads at 3.6cents,so options price had dropped to buyer a .006 cent.Option holders wealth destroyed.
He was surprised by my call.He was of the opinion the cash raised,the acquisition,future growth,would see the option price recover.Nice guy to talk to.Felt sorry he got a "Percy" on a Friday afternoon.

Percy, my thinking would be:

What drives a sustained increase in a company's share price is when you have sophisticated/professional investors buying $25k, $50k, $100k + stakes. Not existing shareholders increasing their stake by between $1k and $15k.
The good thing about the SPP is that it rewards existing shareholders, and unlike a placement, does not provide a CHEAP entry to the sophs and profs.
The big players will still have to buy their shares on market.
PGC are doing what they can to make PGC more attractive to the big players.
For me, as a holder of 3 million PGCOA, that is the most important thing - i don't see where you are coming from with your 'option devaluing' comment.
As long as the heads go up, so will the intrinsic value of the option (even if that is not 100% reflected on the market as is present).

[percy]

Percy, my thinking would be:

What drives a sustained increase in a company's share price is when you have sophisticated/professional investors buying $25k, $50k, $100k + stakes. Not existing shareholders increasing their stake by between $1k and $15k.
The good thing about the SPP is that it rewards existing shareholders, and unlike a placement, does not provide a CHEAP entry to the sophs and profs.
The big players will still have to buy their shares on market.
PGC are doing what they can to make PGC more attractive to the big players.
For me, as a holder of 3 million PGCOA, that is the most important thing - i don't see where you are coming from with your 'option devaluing' comment.
As long as the heads go up, so will the intrinsic value of the option (even if that is not 100% reflected on the market as is present).

Thank you for your reply.'option devaluing'coment comes from the maket sales preceeding the announcement being in 2 to 2.5 cents area.Seller now 1.8 . buyer .006.
Existing shareholders can now buy $15,000 of heads at 3.6cents,so both heads and options have come back.
I take on board,and agree with your comment big players will have to buy on market,and that PGC are doing what they can to make PGC more attractive to them.I did point out in my post that Darryl Levin was surprised by my call,and the reasons for his surprise.I am sure both you and Darryl are correct, and I will be pleased to convert my options in May next year. But in the meantime buying the options has been a bit of a waste of time for me, as I could increase my holding at 3.6 cents with the SSP.

[buns]

Percy, ignore the depth on PGC right now. Depth will only become meanignful once PGC is really up and running, unless you are a short term holder?

I got my voting package in the mail the other day, a lot going on.. Which is good.

The more I think about it, the more I don't mind this. However, my PGC holdings is 2/3rds options and 1/3 heads. So I won't be able to nab to many at this discount, but will still be taking it up. I haven't had an SPP in a long time, I hear you can get ASB to sort the whole thing (for NZ'rs) now instead of sending cheques?

[percy]

Percy, ignore the depth on PGC right now. Depth will only become meanignful once PGC is really up and running, unless you are a short term holder?

I got my voting package in the mail the other day, a lot going on.. Which is good.

The more I think about it, the more I don't mind this. However, my PGC holdings is 2/3rds options and 1/3 heads. So I won't be able to nab to many at this discount, but will still be taking it up. I haven't had an SPP in a long time, I hear you can get ASB to sort the whole thing (for NZ'rs) now instead of sending cheques?
Thanks buns.I received my papers yesterday.Will not do anything, although I did think of voting against SSP.!!!!!! I have allways intended to convert my options into shares in May,so I should not complain as fund raising will move the company forward more quickly.My holding % is the same as yours.I quess not being in the position to take up more in the SSP, and the fact I had my position covered is playing on my mind.
I am with Craigs,and have an Aussie cash management account with them,so all I have to do is post paper work to Craigs who take the issues for me.

[buns]

Flemmo raises a top point, and it is something I've never considered with small cap raisings.

I was actually annoyed when I saw the SPP was not split between us and insto's. But how would an insto provide value other than direct cash to PGC's model? I can't think of much.

I really think the key for these companies to get insto’s is to demonstrate the acquisition strategy is working.

With insto’s being happy these guys can- identify undervalued companies, have a support cap structure to buy them, implement them into their current operations, then prove they the benefits (EBITDA) from that acquisition exceed the purchase consideration.

Plus Flemmo's main comment - If they get GM Med churning out EBITDA in a big way, the into's will be keen and have to buy on market. Instead of the other way around with small hopefull investors like you and I buying on market. What will see a larger rise in the SP?

Remember, this is only one way to view this thing. We are hopefull shareholders, so will always want to belive the upside in these things. PGC could have really really wanted an insto buying in here but failed to get one for reasons we don't know about.

[percy]

Flemmo raises a top point, and it is something I've never considered with small cap raisings.

I was actually annoyed when I saw the SPP was not split between us and insto's. But how would an insto provide value other than direct cash to PGC's model? I can't think of much.

I really think the key for these companies to get insto’s is to demonstrate the acquisition strategy is working.

With insto’s being happy these guys can- identify undervalued companies, have a support cap structure to buy them, implement them into their current operations, then prove they the benefits (EBITDA) from that acquisition exceed the purchase consideration.

Plus Flemmo's main comment - If they get GM Med churning out EBITDA in a big way, the into's will be keen and have to buy on market. Instead of the other way around with small hopefull investors like you and I buying on market. What will see a larger rise in the SP?

Remember, this is only one way to view this thing. We are hopefull shareholders, so will always want to belive the upside in these things. PGC could have really really wanted an insto buying in here but failed to get one for reasons we don't know about.

Good points.I have held EBO in NZ since its market cap was under $2.5mil [now over $370mil].It took a long time for the institutions to come on board.They have helped in later years,but not having them there in earlier years never hindered growth.

[h2so4]

I rang Darryl Levin ,PGC's company secretary,this afternoon to express my concern that the company's action ;the SSP had destroyed option holders wealth.I pointed out that an existing shareholder who wished to buy more shares had to either pay 4.5 cents for the heads or 2.5 cents for the options[plus 2cents on conversion].Now that buyer could buy up to $15,000 of heads at 3.6cents,so options price had dropped to buyer a .006 cent.Option holders wealth destroyed.
He was surprised by my call.He was of the opinion the cash raised,the acquisition,future growth,would see the option price recover.Nice guy to talk to.Felt sorry he got a "Percy" on a Friday afternoon.

Did you ask Darryl if they had won any more contracts lately?

Lend Lease wins $1.02b in new work June 6, 2011 - 9:44AM

AAP

Constructor and property developer Lend Lease Group says it has won two pieces of work worth a total of more than $1 billion.

The company's Abigroup, which it acquired in March, has been appointed managing contractor for stage two of construction of the Queensland Children's Hospital in Brisbane.

The project is worth about $900 million to Abigroup, Lend Lease said on Monday.

Advertisement: Story continues below Stage one of work on the hospital began in January 2009 and stage two will deliver a 359-bed hospital and 12 clinical levels by early 2014.

[percy]

Did you ask Darryl if they had won any more contracts lately?

Lend Lease wins $1.02b in new work June 6, 2011 - 9:44AM

AAP

Constructor and property developer Lend Lease Group says it has won two pieces of work worth a total of more than $1 billion.

The company's Abigroup, which it acquired in March, has been appointed managing contractor for stage two of construction of the Queensland Children's Hospital in Brisbane.

The project is worth about $900 million to Abigroup, Lend Lease said on Monday.

Advertisement: Story continues below Stage one of work on the hospital began in January 2009 and stage two will deliver a 359-bed hospital and 12 clinical levels by early 2014.

No I only spoke to him about the SSP. I repeat that he was of the opinion the cash raised,the acquisition,future growth,would see the option price recover.Today was a public holiday in NZ,Queen's Birthday,so my broker was closed.After speaking with Darryl,and thinking about what he,Steve Fleeming and buns said I thought of buying a few more options.!!!

[buns]

Aged care services – sold

I expected this (posted earlier) as PGC continually acquires medical distribtution firms, the aged care business unit will become a distraction, with PGC’s unable to add value to it through scale or synergies from other BU’s.

They also had no competitive advantage what so ever in this space, and in the years to come with more focus in this space, larger companies focused on aged services would have quickly mopped up PGC’s client base.

I’m not sure whether this is a good deal or not (in $$ terms), I need to look into this. However it re iterates that PGC want cash, want to invest/acquire. With the SPP not being underwritten, the asx being in a foul mood, PGC falling lower, I expect a very poor uptake from the SPP. Maybe this sale will help make up for that?

FY11 numbers to be posted in a month or so as well – lots going on at Paragon.

[percy]

[QUOTE=buns;348364]Aged care services – sold

I expected this (posted earlier) as PGC continually acquires medical distribtution firms, the aged care business unit will become a distraction, with PGC’s unable to add value to it through scale or synergies from other BU’s.

They also had no competitive advantage what so ever in this space, and in the years to come with more focus in this space, larger companies focused on aged services would have quickly mopped up PGC’s client base.


I think the sale is positive,as it shows they want to focus on medical distribution.Their appetite for cash leads me to think another acquistition could be on the cards.They now have a good distribution network in place,so any acquistition would become bolt on.Share price weakness will made the SSP difficult to get full take up.

[Damo79]

Hi Buns, Percy, Steve et al. My thanks for your thoughts on this thread, which brought PGC to my attention. I've read up on everything I can and agree it has substantial upside possibilities in the medium to long term from this price. Have joined you as a holder today in PGCOA. Here's hoping some share price appreciation is seen in the next 10 months :)

Cheers
Damo

[percy]

Hi Buns, Percy, Steve et al. My thanks for your thoughts on this thread, which brought PGC to my attention. I've read up on everything I can and agree it has substantial upside possibilities in the medium to long term from this price. Have joined you as a holder today in PGCOA. Here's hoping some share price appreciation is seen in the next 10 months :)

Cheers
Damo

Hi Damo79. Time will tell but those PGCOAs going through at 1.1cents today looks pretty astute buying to me.

[Damo79]

Hi Damo79. Time will tell but those PGCOAs going through at 1.1cents today looks pretty astute buying to me.

Hope so!!

Regarding the sale of the aged care services. From what I can see, their total aquisition costs were about 800k, it provided some positive cashflow during the time they've had it, and now they've sold it as a non-core business segment for $1.5-1.6 million. I think this is a positive move myself and allows them to focus more on their distribution business.

[Damo79]

RB Milestone research report out. Available from Paragon's website here:

http://paragoncare.com.au/pdf/Paragon%20Care%20-%20Valuation%20Report%20-%20June%2020.pdf

They have come to a valuation of 6.1 cents per share. Good on the buggers ;)

[steve fleming]

Nice announcement by PGC today confirming disposal of Tender Living and Lifetime Planning - $1.5m to apply to debt repayment

I would think it is very rare to see a listed company buy an operating business and then sell if off three years later for a capital gain (approx $600k capital gain which represents a 70% return on PGC’s 870k investment in these two businesses in 3 years). Most divestments by ASX companies are at a loss on “non-core” (read underperforming) businesses.

Further evidence of what good operators the PGC team are.

This will allow Management to focus 100% now on building up its durable medical products distribution businesses.

Will also help now in selling the PGC story and valuations– a pure-play medical products distributor

[steve fleming]

I think this announcement is more significant than any other put out by PGC over the last few years.

It proves the PGC strategy is working.

That is, the larger product range from combining the various aquired businesses makes the PGC value proposition much more attractive to customers. It proves the combined businesses can win contracts beyond the capabilities of any the businesses operating individually.

To win a high profile $1.5m contract will do wonders for the morale and confidence of the PGC directors and staff. The tendering experience and to now have this on the PGC 'resume' will assist greatly in winning future large contracts.

congratulations PGC!!

Another momentus day for PGC – a $2m contract win.

It proves that PGC can consistently win multi-million dollar contracts.

I can’t think of another sub $10m market cap company that has that capability.

Remember there are some 60 major hospital re/developments across the next three to five years that PGC have identified.

“This contract clearly demonstrates the enhanced capabilities of Paragon Care following the
acquisition of several successful health and aged care businesses and the benefits that have
flowed from merging and integrating these businesses.”

[steve fleming]

$1.6m (normalised) EBITDA for PGC – so profit is starting to get pretty chunky. And demonstrates the success of the turnaround, from being unprofitable 2 years ago.



Really pleased to see big GP margin expansion, from 30% in FY10 to 34% in FY11. Some of that will be a result of the higher margin Volker product hitting FY11, but shows that PGC is able to secure top line profit growth as well as benefit from economies of scale in terms of overheads reducing as a proportion of sales.

I do like this statement from the MD, confirming PGC’s competitive advantage that has arisen as a result of the acquisition strategy, and suggests a reason why they are able to increase margins:

“Paragon Care now has in place a range of products for hospitals, aged care, day care and

other medical facilities that is unmatched by our competitors. We are extremely well positioned
to win future hospital and aged care development and refurbishment projects as well as ongoing
supply contracts.”

Looking forward to the next 6 months as the revenues from the big contracts hit the P&L and the margin expansion continues.

Now, I wonder if this year the directors are going to have the b*lls to put out profit guidance for FY12.

[percy]

Been waiting hours for you to post.A very pleasing result.I expect the balance sheet is now even stronger than 30/6/11.

[Corporate]

Nice quarterly result for PGC (a record). It looks like there are only options for sale at the moment. Does anyone have a view on purchasing these over heads given there is only 7 months until expiry

[percy]

Nice quarterly result for PGC (a record). It looks like there are only options for sale at the moment. Does anyone have a view on purchasing these over heads given there is only 7 months until expiry

yes they are in the money.Conversion is 20cents,so trading at 15 cents means a share costs 35cents.I sold heads about the time of the SSP and brought more options.I intend to convert all or nearly all of my options.I knew SSp would affect the option price,but have been surprised it has stayed weak for so long and not tracked the heads price.

[steve fleming]

Looking forward to the next 6 months as the revenues from the big contracts hit the P&L and the margin expansion continues.

Now, I wonder if this year the directors are going to have the b*lls to put out profit guidance for FY12.



The cash is rolling in now for PGC, with record receipts ($6m+) and operating cash for the quarter.

I guess the pressure is on PGC to continue to win the big contracts to maintain and grow those sort of numbers.

Meanwhile, I will continue to pester Mark Simari to put out an FY12 forecast. There is not really an excuse why they shouldn't now, FY12 guidance will be important from a valuation/ re-rating perspective

[Entrep]

Something funny going on today... trades always weird on this one anyway. Anyone have any insight?

[percy]

Something funny going on today... trades always weird on this one anyway. Anyone have any insight?

Not just today.PGC and PGCOA have been very thinly traded since last year's SPP where everyone got their fill.The PGCOAs have not really followed the heads.Now we are seeing the heads follow the options!!! I am not a happy chap as I have mostly options.To convert or not to convert is becoming a hard decision.

[steve fleming]

Not just today.PGC and PGCOA have been very thinly traded since last year's SPP where everyone got their fill.The PGCOAs have not really followed the heads.Now we are seeing the heads follow the options!!! I am not a happy chap as I have mostly options.To convert or not to convert is becoming a hard decision.

Yeah looks like there is going to be a fair bit of selling pressure leading up to option conversion.

Unfortunately, it looks as though PGCOA will drive PGC as PGCOA holders look to sell out rather than convert.

A pretty poor first half, and comments from Management suggesting a slowdown in government health expenditure have not helped either.

I wonder if the Directors have any aces up their sleeves prior to conversion - they should take a look at what CAJ are doing.

[percy]

Yeah looks like there is going to be a fair bit of selling pressure leading up to option conversion.

Unfortunately, it looks as though PGCOA will drive PGC as PGCOA holders look to sell out rather than convert.

A pretty poor first half, and comments from Management suggesting a slowdown in government health expenditure have not helped either.

I wonder if the Directors have any aces up their sleeves prior to conversion - they should take a look at what CAJ are doing.

I had trouble getting my head around the first half result.Stock held,paid for before being sold.??? Not clear/clean.
EBO have been talking of Aussie slow down too.Would appear govt's are trying to put a cap on health spending everywhere.
I am hopping the directors have some aces up their sleeves too.!!!!!!!!! [bloody big ones]!!!!

[Entrep]

Volume is still very low, I think someone is playing funny buggers. What's really changed overnight - nothing.

[steve fleming]

Yeah looks like there is going to be a fair bit of selling pressure leading up to option conversion.

Unfortunately, it looks as though PGCOA will drive PGC as PGCOA holders look to sell out rather than convert.

A pretty poor first half, and comments from Management suggesting a slowdown in government health expenditure have not helped either.

I wonder if the Directors have any aces up their sleeves prior to conversion - they should take a look at what CAJ are doing.

So PGCOA due to convert at end of next month.

There are a few things I will need to see before I convert:

1) positve casflow for the 3rd qtr (announced end of April)
2) An update on the '"soft"" industry conditions mentioned in the hlf yearly
3) profit guidance
4) underwriting of the options (given how important the option conversions are to the capital structure of PGC - management should be able to secure u/w if the PGC story is good enough)

If I don't receive decent responses to the above, then i'd be pretty unlikely to convert.

I'm not putting another $50k into a company that I currently have some pretty big question marks on fundamentally.

Management have just over 6 weeks to convince me.....

[percy]

So PGCOA due to convert at end of next month.

There are a few things I will need to see before I convert:

1) positve casflow for the 3rd qtr (announced end of April)
2) An update on the '"soft"" industry conditions mentioned in the hlf yearly
3) profit guidance
4) underwriting of the options (given how important the option conversions are to the capital structure of PGC - management should be able to secure u/w if the PGC story is good enough)

If I don't receive decent responses to the above, then i'd be pretty unlikely to convert.

I'm not putting another $50k into a company that I currently have some pretty big question marks on fundamentally.

Management have just over 6 weeks to convince me.....

Steve,
Thank you for sharing your concerns and thoughts.Certainly has helped me in knowing what to be looking for in 3rd qtr announcement.Trust all is well with your new arrival.

[steve fleming]

Steve,
Thank you for sharing your concerns and thoughts.Certainly has helped me in knowing what to be looking for in 3rd qtr announcement.Trust all is well with your new arrival.

Hi Percy, it is unfortunate - management have tried really hard to build up PGC, but appear to have been impacted by soft industry demand and falling margins, so i feel a bit sorry for them

But sympathy is not a good reason to make an investment decision, unfortunately for PGC....

And thanks - new baby is doing well....but I look fowrard to the times when both the baby and the 2 year old are asleep at the same time (which is pretty infrequent!) as it is a pretty full on time

[percy]

Sorry Steve,but I had a good laugh at your expense.!!!!

[h2so4]

So PGCOA due to convert at end of next month.

There are a few things I will need to see before I convert:

1) positve casflow for the 3rd qtr (announced end of April)
2) An update on the '"soft"" industry conditions mentioned in the hlf yearly
3) profit guidance
4) underwriting of the options (given how important the option conversions are to the capital structure of PGC - management should be able to secure u/w if the PGC story is good enough)

If I don't receive decent responses to the above, then i'd be pretty unlikely to convert.

I'm not putting another $50k into a company that I currently have some pretty big question marks on fundamentally.

Management have just over 6 weeks to convince me.....

Pretty much covers it.

I'm not sure where we will end up.
HY didn't look good and less govt spending and a slow down in the sector leads me to believe that I purchased these at the top of pgc's growth cycle.

I am sure PGC are in the right sector but when will growth return and will PGC secure sales in new development contracts.

About the underwriting of options Steve. They said in their report that they would assume more debt to cover any shortfall.

[Joshuatree]

So 5 million options underwritten out of 14.7 million. Positive cash-flow for Quarterly. Re $3.7 million t/o. Sales still soft. Expectations with tenders and "Pipelines" and improvement ,talking it up blah,blah. In the balance re conversion for some?

[percy]

So 5 million options underwritten out of 14.7 million. Positive cash-flow for Quarterly. Re $3.7 million t/o. Sales still soft. Expectations with tenders and "Pipelines" and improvement ,talking it up blah,blah. In the balance re conversion for some?

Very much in the balance. I hold 1500 PGC and 38,500 PGCOA and thinking of converting either 8,500 to give me 10,000 heads,or 18,500 to give me 20,000 heads,but will leave deciding until the last minute.Still my not convert any.That cash flow was also helped by a deposit on an order.

[steve fleming]

So 5 million options underwritten out of 14.7 million. Positive cash-flow for Quarterly. Re $3.7 million t/o. Sales still soft. Expectations with tenders and "Pipelines" and improvement ,talking it up blah,blah. In the balance re conversion for some?

Pretty much summed up my thoughts re conversion at the moment.

PGC needs scale (given its rather lowish margins) - and they need the big government contracts to give them the big revenue uplifts. They have a pretty good track record at securing some big tenders, so it comes down to whether you believe the directors that this is just a short term slow down in government health spending.

Even if there is a pick up, its not going to be reflected until the FY13 accounts which is a fair way away...so a fair bit of risk, in the short term at least.

I'm thinking I will be comfortable with probably converting half of my options, which, given the risk, will not over expose me in terms of my portfolio weighting

[steve fleming]

Budget brings small cap winners and losers


Brendon Lau (http://www.eurekareport.com.au/contributor/brendon-lau)15 May 2013


Read more at Eureka Report: http://www.eurekareport.com.au/article/2013/5/15/small-caps/budget-brings-small-cap-winners-and-losers#ixzz2TQ3OC0MD

I’ll start with some winners, even though identifying these stocks is like trying to find loose change behind the dresser: there are precious few, and those you find are generally not material beneficiaries, with the government wielding an axe to spending to plug a gaping $18 billion budget hole.National Disability Insurance Scheme (NDIS)
However, the grin on the face of Paragon Care’s (PGC) chief executive, Mark Simari, was a giveaway.The company is arguably the best placed Australian listed company to benefit from the fully funded $14.3 billion National Disability Insurance Scheme, as Simari suspects the scheme will drive demand for the company’s medical equipment, such as wheelchairs, shower trolleys and home care beds and mattresses.“We will benefit materially from the NDIS,” he said. “We currently supply equipment [to families] through the Department of Human Services, and the $1 million to $2 million [revenue we get from this business] we think might grow to $2 million to $4 million.”The federal budget is the second tailwind for Paragon Care. The Victorian state budget (released last week) also put the company in the winner’s circle.The Victorian government reaffirmed its commitment to build the Bendigo Hospital and the Monash Children’s Hospital, and has undertaken a number of new regional medical facility initiatives.Simari believes the company will hit the top end of its 2012-13 revenue guidance. Paragon Health is forecasting full-year revenue of between $16 million and $17 million compared with last year’s $15.8 million, and net profit of $700,000 to $1.2 million versus a loss of $100,000 in 2011-12.This puts the stock on an attractive price/earnings multiple of around nine times for the current year, which is three times below other global hospital equipment providers.The company has undertaken a cost cutting drive, which helped it post a 164.7% surge in net profit to $564,000 for the December half, although sales dipped 7.1% to $9.2 million.The $9.7 million market cap stock closed flat at 30 cents on Tuesday.

Read more at Eureka Report: http://www.eurekareport.com.au/article/2013/5/15/small-caps/budget-brings-small-cap-winners-and-losers#ixzz2TQ300zMZ

[steve fleming]

The lumpiness in revenues in a constrained CAPEX environment is a real problem for PGC.

Unless it is a typo, then this statement from the company runs completely counter to what I was expecting:

"As the company has matured with additional acquisitions exposed to the health and aged care sector, the more monthly revenue volatility we are experiencing within each financial year."

[Joshuatree]

Yes bit of a faux pa and literally hundreds of companies on the ASX promising a better 2nd half!!

Margins higher

"Our EBIT and NPAT results for the half largely reflect affixed cost base that has absorbed considerable investment into PGC's future of which benefits are yet to be reflected in the rev and earnings lines"

"The acquisition(of LR Instruments) will have a two fold impact on PGC. It will nearly double the EBITDA of Paragon and assist in evening out the lumpy nature of Paragons's legacy business given its largely constant rev over the whole year." edited slightly

cash flow deficit of $627k with 7 good (yeah right:) reasons why

Be great when/if they throw out the lumpy mattress of operations and buy a new kingsize super coil performance one.
Still on my watch list. If the big mkt correction arrives may enter at a lower price.

[percy]

I think we need to look at PGC's business and compare it to EBO [NZ] and CAJ [AX].
CAJ. Have hundreds of people every day getting an Xrays/scans,so cash flow is constant.
EBO,Are supplying pharmacies and hospitals with 1000s of items everyday,so cash flow is fantastic.
PGC,Have to quote to supply beds and equipment,so rely more on "one off" big orders,and few daily orders,so stock levels and cash flows are lumpy.

[Joshuatree]

Cheers Percy. Im noticing a lot of first half results on ASX under delivering and (over?) promising that the 2nd half will make up for it and full year guidance will be met. Bit of a leap of faith at the mo that these will be met with margins and spending down etc, sign of the times? Just my observations and may well be exaggerating but it seems like a lot in this basket.

[noodles]

PGC have recently acquired another company using debt. As part of the announcement, they highlighted that "Net Debt/EBITDA ratio of 1.25x on an annualised basis". Their current Net Debt is $5mill. Therefore their EBITDA=$4mill. I have estimated the "ITDA" to calculate NPAT




FY15


EBITDA
4,000


DA
300


Interest
500


Tax
896


NPAT
2,304


eps
0.0353


pe
9.62



Now as Percy has highlighted above, he does not like the business as much as his beloved EBO. PGC certainly does not have the same track record of EBO and you could argue earnings are not of such high quality as they are lumpy. But EBO does not have a PE<10 and given it's size will find it hard to grow earnings at the same rate of PGC.

I look for GAARP(Growth at a reasonable price). PGC fits the bill for me.

DISC: Holding PGC. Waiting for the next catalyst to buy EBO.

[percy]

Noodles thanks for your analysis of future earnings.
The acquisition of Scanmedics I view as very positive for three reasons.
1] Scanmedics products will fit and add to Paragons product range.
2]Scanmedics acquisition takes Paragon Care more into distribution rather than manufacturing.
3]Scanmedics being NSW based will give Paragon Care a beach-head to supply NSW from,and Paragon's Victoria base will give Scanmedics better distribution to Victoria.

[steve fleming]

Hi Percy

Also probably worth checking out LHC, in kind of the same sort of space (high end medical device distribution)
Good divi (6% approx) and earnings growth (high single digits organic)

Both PGC and LHC subject to falling USD headwinds though (LHC: 25% of costs are in USD)

[Westboy]

Hi Percy

Also probably worth checking out LHC, in kind of the same sort of space (high end medical device distribution)
Good divi (6% approx) and earnings growth (high single digits organic)

Both PGC and LHC subject to falling USD headwinds though (LHC: 25% of costs are in USD)

I asked $us/$a exchange rate question to a substantial shareholder today.

PGC is hedged so should be OK, plus after hedges unwind costs can be passed on as all competitors are in the same boat.

I don't think this is a very good business as it has a very high working capital requirement and they are totally crazy to pay a dividend. That said, It should go up over the next few months IMHO.

Cheers

[percy]

I found both the Chairman's comments and the agm presentation very positive.
New $10m bank debt facility will help fund further eps accretive acquisitions,and organic growth.
The company is gaining critical mass.
I added to holding on Thursday at 35 cents.

[noodles]

Here is my latest calculation of earnings





FY15
Proforma - due to 1 oct aquistion


EBITDA
4000
company estimate


DA
400



ebit
3600
company estimate


Interest
500



npbt
3100



Tax
868
28%


NPAT
2232



eps
0.033



pe
10.57




So still lots of potential for pe expansion.

[percy]

Here is my latest calculation of earnings





FY15
Proforma - due to 1 oct aquistion


EBITDA
4000
company estimate


DA
400



ebit
3600
company estimate


Interest
500



npbt
3100



Tax
868
28%


NPAT
2232



eps
0.033



pe
10.57




So still lots of potential for pe expansion.

Thanks for sharing your projections with us.
I thought things were looking positive,and your figures are better than I was/am hoping for.
I note the eps will increase from 0.02 to 0.033 ie 65%,while the PE with reduce from 17.5 to 10.57.
I have used ANZ Direct Broking figures for current eps and PE.

[Joshuatree]

Yes cheers noodles.

Good announcement today and final payment made for LR Instruments with Gross performance targets exceeded". and

Commenting on recent operating performance Paragon Care’s Managing Director MrMark Simari said, “Based on preliminary financial information, earnings for the firsthalf of the year will be significantly higher than the prior period and will be consistentwith the company’s pro -forma FY15 expectations. In addition, the business continuesto generate strong and stable cashflows, with operating cashflow in the secondquarter expected to exceed the first quarter’s str, ong result. As we move into thesecond half of the year the sales "pipeline looks very strong which will underpinParagon Care’s ongoing organic growth while we continue to look at complementary]acquisitions.” ]

[noodles]

Yes cheers noodles.

Good announcement today and final payment made for LR Instruments with Gross performance targets exceeded". and

Commenting on recent operating performance Paragon Care’s Managing Director MrMark Simari said, “Based on preliminary financial information, earnings for the firsthalf of the year will be significantly higher than the prior period and will be consistentwith the company’s pro -forma FY15 expectations. In addition, the business continuesto generate strong and stable cashflows, with operating cashflow in the secondquarter expected to exceed the first quarter’s str, ong result. As we move into thesecond half of the year the sales "pipeline looks very strong which will underpinParagon Care’s ongoing organic growth while we continue to look at complementary]acquisitions.” ]

I was about to post something on that announcement, but you beat me to it. Great to know everything is on track. I think it should have been a price sensitive announcement.

[noodles]

This one drives me nuts. Its like watching paint dry. Its still in an uptrend so no good reason to sell it. But its so slow going, I might be buying its aged care products before I see a decent return from it. And so much for a good announcement - the price hasnt moved. :mad ;:
At a close of 39.5c, it has broken out of a 5.5 month trading range. Happier now?

[percy]

[QUOTE=KW;525034]This one drives me nuts. Its like watching paint dry. Its still in an uptrend so no good reason to sell it. But its so slow going, I might be buying its aged care products before I see a decent return from it.

Do you know if, and how much discount shareholders get on the aged care products?

[percy]

I found both the Chairman's comments and the agm presentation very positive.
New $10m bank debt facility will help fund further eps accretive acquisitions,and organic growth.
The company is gaining critical mass.
I added to holding on Thursday at 35 cents.

Above posted on 16/11/2014.
Timely.!!
With yesterday's close at 42 cents I am up 20% in two months.

[noodles]

Above posted on 16/11/2014.
Timely.!!
With yesterday's close at 42 cents I am up 20% in two months.
Great buying Percy. It is a challenge to find a stock that is not too speculative and well priced, but will still perform in a very weak Aussie economy and out perform the market. PGC has been a star performer for me too (27c entry).

I also like SDI as a turnaround story with growth. They should have a great FY15 as the AUD and silver price falls. Also trades on very unchallenging multiples. Based on history, I expect a profit upgrade in early Feb.

[percy]

I am finding Aussie difficult,so was pleasing to get PGC right.I now own very few Aussie stocks.A handful of good small caps,and a handful of miners I am embarrassed to admit I am "stuck"with.!
Will watch with interest for SDI's upgrade.

[bowser]

Took a position as soon as it broke 40c resistance. I see 50c as the next stop, then free sailing.

[DarkHorse]

Took a position as soon as it broke 40c resistance. I see 50c as the next stop, then free sailing.
This is my only real conviction stock on the ASX at the moment. Need to find a few more quick - well timed buy financially, but missed some big gains for the all important competition! :)

[bowser]

I am finding Aussie difficult,so was pleasing to get PGC right.I now own very few Aussie stocks.A handful of good small caps,and a handful of miners I am embarrassed to admit I am "stuck"with.!
Will watch with interest for SDI's upgrade.

PME are another that are going strong - maybe a little too strong at the moment.

[percy]

I am most impressed with todays result.
Management have successfully taken the business up to the next level.
The $2.7 mil turnaround in operating cash flow from -$627,397 to $2,092,398 is outstanding.
The move to "consumerables" is paying off.
With revenue and margins well up, we are seeing a huge increase in after tax profit.
With sound capital management,a strong balance sheet, I think we will see growth accelerate,with further acquisitions funded from existing resources.

[babymonster]

The sp didn't like it that much.. Possibly dragged down by the whole market

[DarkHorse]

I am most impressed with todays result.
Management have successfully taken the business up to the next level.
The $2.7 mil turnaround in operating cash flow from -$627,397 to $2,092,398 is outstanding.
The move to "consumerables" is paying off.
With revenue and margins well up, we are seeing a huge increase in after tax profit.
With sound capital management,a strong balance sheet, I think we will see growth accelerate,with further acquisitions funded from existing resources.

Couldn't agree more - these guys tick all the boxes! Great company at a great price.

[percy]

The sp didn't like it that much.. Possibly dragged down by the whole market

The whole market must be in a better mood today,as it has marked PGC up 4cents to 50 cents.!!! lol.

[Joshuatree]

And a 0.6c div for the half.

[babymonster]

Unable to get some yesterday. Should put a higer bit.. Errrr

[percy]

I found both the Chairman's comments and the agm presentation very positive.
New $10m bank debt facility will help fund further eps accretive acquisitions,and organic growth.
The company is gaining critical mass.
I added to holding on Thursday at 35 cents.

Above posted 16-11-2014.
I am enjoying the share price upward trajectory.Today 52.5 cents and rising??? !!!

[Joshuatree]

Yeah one of my better players ;from 25c.. $100 mill rev here we come.

[DarkHorse]

I'm grateful to the sharetrader community for this one - had to have a close look when I saw both Noodles and Percy had chosen it for the comp, then became my highest conviction asx holding late last year. Up 115% since then :)

[percy]

I'm grateful to the sharetrader community for this one - had to have a close look when I saw both Noodles and Percy had chosen it for the comp, then became my highest conviction asx holding late last year. Up 115% since then :)

And there was I thinking PGC would sky rocket me up ahead of you and Noodles in the competition .!!!!!!!!!!!!!!
What are you two doing picking PGC...?????????????? lol.

[percy]

Going from today's announcement, those of us who applied for extra shares, on top of our rights, will get all we applied for.
Yes, hindsight is wonderful. lol.

[mark100]

Going from today's announcement, those of us who applied for extra shares, on top of our rights, will get all we applied for.
Yes, hindsight is wonderful. lol.

I hope so percy because my top up application was some 50x my entitlement. But there have been cases in the past when they regard that as greedy and limit your allocation so their underwriter mates can get a few as well.

[percy]

I hope so percy because my top up application was some 50x my entitlement. But there have been cases in the past when they regard that as greedy and limit your allocation so their underwriter mates can get a few as well.

I can't stop laughing...50x...classic.!!!!!
I thought I was being optimistic applying for 4x...
Make my/your day if you get them,you deserve it, for trying it on.
Let us know how you get on. ....................lol.

[ozzie]

I can't stop laughing...50x...classic.!!!!!
I thought I was being optimistic applying for 4x...
Make my/your day if you get them,you deserve it, for trying it on.
Let us know how you get on. ....................lol.

50x is funny? As the proud holder of one share, I sent off $15k, which by my calculations is 28,302x my entitlement... :)

[mark100]

50x is funny? As the proud holder of one share, I sent off $15k, which by my calculations is 28,302x my entitlement... :)

Nice one :) This was a strategy I employed coming out of the GFC with a lot of rights issues being conducted at large discounts. Often there were several days to get on the register with a minimum holding prior to the ex entitlement date. With so many investors either out of cash or too fearful to participate there were always large shortfalls which I took advantage of. It might be a bit cheeky but it was also profitable.

[ozzie]

Nice one :) This was a strategy I employed coming out of the GFC with a lot of rights issues being conducted at large discounts. Often there were several days to get on the register with a minimum holding prior to the ex entitlement date. With so many investors either out of cash or too fearful to participate there were always large shortfalls which I took advantage of. It might be a bit cheeky but it was also profitable.

Yes I was inspired by the Stephen Mayne articles - currently I'm in over 1300 different stocks and have a half share in about 650 more. Unlike him I managed to make a good profit from the buying and selling, only buying during bullish periods in stocks trending up where the depth was good.

[percy]

Ozzie.Did you post a few years ago you had trouble with the share registries and Australia Post?
When Mark100 posted I remembered we had a hard case who chased the SPPs.
If it was you,great to hear from you again.

[ozzie]

Hi Percy, yes I've complained about how useless Computershare is in the past - they have a weird limit of 95 stocks to login to their website, so I can't update my bank details, email etc unless I email them personally. Then they want me to send them a list of all my stocks! Really, you don't have that info on your database? And even if I could logon their site is incredibly slow and you can only update one stock at a time. Link has none of those problems for instance. Hopefully Link will make a takeover bid for them sometime. (Yes I am short CPU.)

[stoploss]

Ozzie , can you talk us through the logistics of this . I thought you had to buy a mininum parcel or dollar amount , do you buy 500 shares , get registered then sell 499 ??

[percy]

I too am interested as I recently brought 2,000 ONC so as I could in their SPP when they go ahead with it.I thought the 2000 was the minimum holding.I paid 31 cents a share.Funny enough I have received two holding statements,one for 500 shares,the other for 1500 shares.Maybe I will be able to apply twice if the SPP goes ahead?
I have given up with Computer Share's website.

[ozzie]

$500 minimum parcel, though I usually buy about $700 worth. It's much better though to just find some good companies to buy or short that you can hang onto for at least a year for the tax benefits. I'm making a lot more shorting stocks in mining servs, banking, insurance, free to air tv etc than I am from cap raisings. Studying and understanding macro trends is something most people fail at miserably - why weren't more people shorting free to air tv stocks earlier this year for instance, knowing that Netflix was about to launch in Oz?

[percy]

Thanks Ozzie.Please post more often.

[ozzie]

I've posted on HC as justinp for many years percy, not so much here.

[percy]

I've posted on HC as justinp for many years percy, not so much here.

I will keep an eye out for you on HC.I am Lorraina there,as they already had a percy?!

[percy]

ZERO.!!!
Only had 10,000, and on top of my 2,000 rights I applied for an extra 8,000 shares.
Only received the 2,000 I was entitled to.
So what was the point in letting us apply for extra?
Mark100 and Ozzie.Trust you both did better than me.!!
CFO Stephen Munday [0061] 3 88337800 may receive a "polite" call from me in a few days time;"Please explain." ???? lol.

[Joshuatree]

Which one of you will call ;Lorraina ,or Percy; or Lorraina with a Percy:t_up:

[stoploss]

ZERO.!!!
Only had 10,000, and on top of my 2,000 rights I applied for an extra 8,000 shares.
Only received the 2,000 I was entitled to.
So what was the point in letting us apply for extra?
Mark100 and Ozzie.Trust you both did better than me.!!
CFO Stephen Munday [0061] 3 88337800 may receive a "polite" call from me in a few days time;"Please explain." ???? lol.

Percy that doesn't sound right , bearing in mind the amount that went to the underwriters .
Surely they were obliged to take some over subscriptions , or why provide for it ?

[percy]

Percy that doesn't sound right , bearing in mind the amount that went to the underwriters .
Surely they were obliged to take some over subscriptions , or why provide for it ?

Doen't feel right,or look right either.!!!
I agree,why provide for over subscriptions.?
Just logged into www.linkmarketservices.com.au and shows my holding at 12,000.
As a friend pointed out wait for disclosures and see how the directors fared,before ringing the CFO.

[stoploss]

Hi Percy ,managed to get in and take a look at my holding same thing says there is an uncleared cheque for the refund amount of the over subscription .......
I have a massive opportunity cost here as I was buying HIT at the same time , scaled that back a bit to buy more PGC. Can you please post the response from the company , them I will call and have a whinge .
But why wait a few days ? , I will be on the phone today if you cannot do it :)

[stoploss]

That cant be right - the company said that it accepted applications under the Top Up facility -

"The Company has received valid applications under the Rights Issue and accepted applications under the Top-Up Facility for 10,444,363 New Shares, equating to proceeds of
$5,535,512.39"

.

It is right but it is wrong !!!! , I just called the registry " Link " , said it was scaled back ........ Have asked them to check and they are going to call back .

[Joshuatree]

Back in @ 59c and watching for more profit taking to pick up more,(why did i ever leave;oh thats right cashing up for the Global correction:). Seems hardly anyone got a top up going by grumpiness elsewhere.

[percy]

Right.
If your entitlement [rights] was over $2,000 worth you then got scaled back on the extra you ordered.
If your entitlement was under $2,000 worth,you did not get any of the extra you applied for.
So I had 10,000 and rights for 2,000 shares at 53cents [$1060],so was under and therefore received no extras.
Had I held 20,000 shares my rights would have been 4,000 shares at 53 cents [$2120] and would have then been scaled back on the extra shares applied for.
I will not entertain any discussion on what I have written,because I don't understand it,and it makes no sense to me.!...lol.

[mark100]

ZERO.!!!
Only had 10,000, and on top of my 2,000 rights I applied for an extra 8,000 shares.
Only received the 2,000 I was entitled to.
So what was the point in letting us apply for extra?
Mark100 and Ozzie.Trust you both did better than me.!!
CFO Stephen Munday [0061] 3 88337800 may receive a "polite" call from me in a few days time;"Please explain." ???? lol.

No joy for me. I actually wanted to build a position so have been buying on-market at 58.5-61 so far, buying from the instos that were gifted the stock at 53c.

I've already had correspondence with Munday. He said applications were reviewed by the directors with the underwriters. Well there is the mistake...of course the underwriters would tell them to reserve stock for their clients! I basically finished off by telling him the retail guys would have got every cent they applied for if the share price had of fallen under 53c following the closing date.

[stoploss]

This is wrong on so many reasons , why were they scaling back when it was not oversubscribed ?????
Basically they have looked after the larger shareholders and the underwriter here , and given small shareholders nothing . Rich/ Poor lol .
My situation was I had 7500 shares purchased circa 65 cents .... Rights issue was 1500, I applied for 3000 extra .
Obviously got the 1500, and nothing further . Feel if they were going to give shares away to the underwriters they could have allocated some to me and other small shareholders ....
Also as a NZ shareholder the process is a little more difficult than if in Australia, so for all the effort and opportunity cost they have disappointed me.
Didn't think I was being greedy , wanted to average down from paying near the top of the market . Happy to be on the register as a med/long term holder ...... Shareholding under review ..........
Pretty keen to hit the Stoploss on this one if this is how the company treats shareholders ....

[percy]

This is wrong on so many reasons , why were they scaling back when it was not oversubscribed ?????
Basically they have looked after the larger shareholders and the underwriter here , and given small shareholders nothing . Rich/ Poor lol .
My situation was I had 7500 shares purchased circa 65 cents .... Rights issue was 1500, I applied for 3000 extra .
Obviously got the 1500, and nothing further . Feel if they were going to give shares away to the underwriters they could have allocated some to me and other small shareholders ....
Also as a NZ shareholder the process is a little more difficult than if in Australia, so for all the effort and opportunity cost they have disappointed me.
Didn't think I was being greedy , wanted to average down from paying near the top of the market . Happy to be on the register as a med/long term holder ...... Shareholding under review ..........
Pretty keen to hit the Stoploss on this one if this is how the company treats shareholders ....

I agree with you.This has not been to small shareholders advantage.
However, we must not shoot ourselves in the foot.
The reasons for holding this company remain intact,growth company in a growing sector.The acquisitions appear to have been well thought out,and brought at reasonable multiples.The move to more consumerable products,rather than equipment, will improve stock turns and with better cashflow the way is open for further eps accretive acquisitions.
I have just brought 10,000 at .5835cents per share.

[percy]

Looks as though we will have to come up with another "party trick".
And I did so much love the idea of owning 1 share in about 500 companies, so I could apply for SPPs.!!! ...lol.

[mark100]

Looks as though we will have to come up with another "party trick".
And I did so much love the idea of owning 1 share in about 500 companies, so I could apply for SPPs.!!! ...lol.

It should still work for SPPs most of the time percy although I have also seen them scaled heavily at times in a disproportionate manner but less so. The legislation around SPPs state that all shareholders are to be treated equally. The difference here was it was an entitlement offer with a top up facility. Top up facilities are basically a lucky dip as directors tend to make up the rules as they go.

As for the MD's email that KW posted above, I should print it out and use it as toilet paper. I wonder how many of the insto's that got the shortfall will be "long standing shareholders"? Most have probably sold over the past 2 days.

In any case if the combined businesses can perform as forecast, the company is cheap at 60c and this issue will be soon forgotten.

[percy]

Thanks Mark100.
I did forget there is a difference between SPPs and "top ups".

[percy]

Oh well, if there is a market crash and the share price plummets, we will all be sending the MD a big thank you for not taking our money :t_up:

Market crash means more people with health issues.
More health issues means the better PGC will do.!
lol.

[percy]

Not if they all just jump out of windows :eek2:

Have you in all your gloom considered going long on IVC.?

[Zoolanda]

PGC have a bit of history with misplacing stock in a CR. That is what sent the share price from 45c to 22c last time. Lets hope they leant their lesson.

[DarkHorse]

Upbeat addresses at ASM today – continues to show good growth – both organic and from EPS accretive acquisitions, and recent buys trading positively since acquisition. With a low fwd PE, solid balance sheet, great management track record, sector tailwinds and plenty of scope for years of further growth in fragmented industry, there’s a lot to like :)

[percy]

Upbeat addresses at ASM today – continues to show good growth – both organic and from EPS accretive acquisitions, and recent buys trading positively since acquisition. With a low fwd PE, solid balance sheet, great management track record, sector tailwinds and plenty of scope for years of further growth in fragmented industry, there’s a lot to like :)

A good summary.
PGC used to sell mainly "equipment",such a hospital beds,however the acquisitions into "consumables",has greatly improved stock turns and cashflow.
Now that the turnover is over $100mil, I think we will see PGC use their cashflow/balance sheet strength to do more earnings per share accretive acquisitions.[consumables]
They are gaining momentum,so the next few years should be fun.

[percy]

A cracker interim result today.
Revenue......... up 185%
Profit after tax..up 215%
eps..................up 87%
In my previous post I mentioned PGC's move to more "consumables".They expect FY16 to be 50% "equipment",50% "consumables" and FY17 "comsumables" will amount to 70%.Great for cashflow.Although "comsumables" attract a smaller gross margin PGC's margins remain very healthy.
The acquisitions have placed PGC in a strong position for continued growth.The business just keeps getting better.

[DarkHorse]

A cracker interim result today.
Revenue......... up 185%
Profit after tax..up 215%
eps..................up 87%
In my previous post I mentioned PGC's move to more "consumables".They expect FY16 to be 50% "equipment",50% "consumables" and FY17 "comsumables" will amount to 70%.Great for cashflow.Although "comsumables" attract a smaller gross margin PGC's margins remain very healthy.
The acquisitions have placed PGC in a strong position for continued growth.The business just keeps getting better.

Indeed they keep delivering. EPS last three halves: 1.27c, 1.93c, 2.38c; they're fairly coy about FY results - how do you think the numbers will pan out Percy? (or anyone who can hazard a guess)

[percy]

Indeed they keep delivering. EPS last three halves: 1.27c, 1.93c, 2.38c; they're fairly coy about FY results - how do you think the numbers will pan out Percy? (or anyone who can hazard a guess)

Not sure.But will be well up on the 2.38c of this half.
With positive commentary, and new acquisition earnings coming through,the eps is certainly growing rapidly.
I think their projections of "consumables" growing to 70% of revenue points to very high growth rate continuing."Equipment" sales will always remain lumpy,but very profitable.
Cashflow in the next half should be excellent,which should give them the capacity to do further modest "bolt on" acquisitions.

[percy]

Another very positive update out today.
Stronger control of debtors and stock has resulted in much stronger cashflow.
Outlook excellent.

[Joshuatree]

Yes doubled up today on that update.

[DarkHorse]

Good call. Was already great value, only question marks were regulatory reform and cashflow blip. With both those issues resolved, AND integration of acquisitions going great guns it looks a steal. Also note only one broker following and recently added to ASX.

[kura]

Purchased some on Monday on Brexit fallout, & was about to sell & realise profits today.
Then I saw their forecast profit announcement, & think they deserve a place in my long term holdings, rather than a short term trade.

Something about a 200% profit increase that appeals (also like stable nature of industry )

[Joshuatree]

Great timing and entry price Kura. The 3 bolt on purchases are doing the job and I'm reading cash bal up $5 mill to $17 mill.

http://hotcopper.com.au/attachments/pgc-jpg.201135/

[percy]

I was thinking PGC were drifting sideways.Thought all would be good, and was looking forward to a positive result.
Today's update has left me a happy chappie as PGC is my largest Aussie holding.!

[kura]

Shout yourself a snapper Percy !

[percy]

That would be very nice,but looks as though I will have to settle for fish pie.!
Great timing.Well done.
As JT pointed out PGC now have "their model" all sorted out.The move into consumables, which now accounts for approx. 70% of their turnover, means lot faster stock turns,which is resulting in great cash flow.
I think they are gaining momentum,which means a very exciting time for us shareholders.The next two or three years should be fun.!
I expect further eps accretive acquisitions.

[DarkHorse]

I was thinking PGC were drifting sideways.Thought all would be good, and was looking forward to a positive result.
Today's update has left me a happy chappie as PGC is my largest Aussie holding.!
Ditto, ditto and ditto Percy :)

[Well Endowed]

well, unluckily I had a bid sitting in at 61.5 a few days back which wasn't filled (hoping for a bit of brexit selling) and have now bit the bullet and entered at 70c. Heaps of appreciation left if they continue how they are going. I agree a medium term (6mth+) target of $1 seems about right.

[heisenberg]

Acquisition of MIDAS software solutions.
I work in healthcare. This is very, very good news.

[percy]

Acquisition of MIDAS software solutions.
I work in healthcare. This is very, very good news.

Thank you for your post,as I was unsure what to make of the acquisition.

[Joshuatree]

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 (http://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvFDZpiw zqzVS0huhp%2BNxNT7rIGI8UVhVvPlHhlFA%3D)

[percy]

A cracker result.!

[SCHUMACHER]

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

[heisenberg]

Yep happy to be on board with this one

[DarkHorse]

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.

[Well Endowed]

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

[heisenberg]

Pumping along nicely today up beyond 80c
Good volume too

[percy]

Ladies and gentlemen,boys and girls,we have lift off.!!!!!
New all time high.!!!!..88.75 cents.

[DarkHorse]

Nice! And EMC over $1 - a good day on the ASX :)

[Snow Leopard]

Twas AGM day today.

Punters obviously loved what they were told [click for presentation (http://www.stocknessmonster.com/news-item?S=PGC&E=ASX&N=460591)]

Up 5c to 91c

Best Wishes
Paper Tiger

[percy]

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.

[DarkHorse]

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 :)

[Snow Leopard]

Nasty looking drop over last couple of days on big volume.

Anybody got any ideas or conspiracy theories?

Best Wishes
Paper Tiger

[percy]

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.

[Joshuatree]

T/A wise my KWadvisor would say.... "CULL".

[percy]

T/A wise my KWadvisor would say.... "CULL".

Well we will know in February whether KW is right or not.
In the meantime I will "keep the faith"in PGC and hold until the half year result.

[mark100]

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

[Joshuatree]

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.

[Joshuatree]

ps hope your entering the ASX comp this year:)

[percy]

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

Thank you for checking with the company and letting us know.

[DarkHorse]

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.

[mark100]

ps hope your entering the ASX comp this year:)

My largest 5 holdings at the moment are CBL, FID, FIG, KKT and PGC. I doubt there is enough blue sky in any of them to win a tipping comp so I might need to look further down the holding list to find a bit more potential upside

[Joshuatree]

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01826897) 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.

[Joshuatree]

Punished s/p down 13% to 71c atm.Was a strong sentiment fave.

[mark100]

Punished s/p down 13% to 71c atm.Was a strong sentiment fave.

Very disappointed after being under the impression we would be getting something better than that. Failed on many of my metrics so it was sold asap :(

[Joshuatree]

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.

[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

[percy]

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.

[Entrep]

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

[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!

:cool:

[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!

:cool:

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

[macduffy]

Let's just say "Very close to your current valuation".

Good hunting!

:)

[percy]

macduffy and h2so4 your leadership is an inspiration to us all.
Market movers.

[h2so4]

macduffy r leadership is an inspiration to us all.
Market movers.

Ha! Market mover in a bottle top. LOL

[macduffy]

Ha! Market mover in a bottle top. LOL

Yes, a new experience for both of us then!

:ohmy:

[winner69]

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.

[h2so4]

From guidance it looks like a decent drop in eps for F17 v F16 - all those new shares.
SD ​reckons this translates to growth. See HBL thread.

[Snow Leopard]

Since the last post (https://www.youtube.com/watch?v=McCDWYgVyps) 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

[DarkHorse]

Very positive and easy to read analysis from Curran out recently: http://www.paragoncare.com.au/wp-content/uploads/PGC_Paragon-Care-Initiation-Report-Q4-FY17-CurranCo.pdf

[Joshuatree]

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?

[h2so4]

Very positive and easy to read analysis from Curran out recently: http://www.paragoncare.com.au/wp-content/uploads/PGC_Paragon-Care-Initiation-Report-Q4-FY17-CurranCo.pdf
Discounted 84% that's cheap.