PEB - Pacific Edge Ltd

[MAC]

MAC, you can revise your conservative Forex cross numbers now the Kiwi is falling thick and fast right now as key support is broken. Yeehaw!

Yes it is good news for a lot of companies, although most like myself are probably valuing PEB based on their five year goal as provided by Pacific Edge in NZD. I'm applying an exchange rate for sensitivity analysis, the long run exchange rate assumption is really that chosen by Pacific Edge.

All bodes very well for PEB going forward if the NZD has peaked, happy to leave that presumption to all you forex traders out there, not my specialisation.

[Bobcat.]

Someone taking up your challenge - 76 cents coming up!

As I recall Balance - you also sold down at around 73c (to half of your holding, yes?). Do you also have an entry point for buying on the way up? Before I buy in again I'd want to see it close for the day with bids sitting at 75c or higher.

I suspect today's boost may have more to do with the fall in the NZD than in any improvement in PEB's fundamentals.

[MAC]

Undervalued stocks will return to value Bobcat, no change in already good fundamentals required.

[winner69]

Sell the lot now and buy SPK with the cash. Collect 9cps dividend and after the due date, sell and buy back into PEB - if you are that thick. I forgot to mention the 60% inputted tas that should give you a further significant reward when you file your income tax return.

Lets see how it turns out .....hypothetically anyway

Sold 100,000 (yes a XL) on open price at $0.73 = $73.000

Purchased 25,525 SPK at $2.86 on open.

So SPK dividend of $2,297 on record date of September 26th

Sell SPK then and buy back PEB

Worry about brokerage etc later

[MAC]

At the AGM David Darling told us at question time that PEDusa had been performing Cxbladder tests for patients with Medicare coverage, and that Medicare are holding payment in accrual (was I think the word he used) awaiting a contract signing.

The Pacific Edge website has advised us as below for well over a year now;

“Pacific Edge is a Medicare provider. Pacific Edge will accept patients with Medicare coverage, and these patients will have no financial responsibility for Cxbladder”

http://www.cxbladder.com/for-patients/billing-policy/

There could well be quite a few tests accruing there now, all ready to be released as revenue at probably a yet to be negotiated price point.

It would be satisfying if Pacific Edge receive a Medicare contract signing prior to 30th September for inclusion of revenues within the HY15 reporting period, else, well even more revenue to be released at FY15 I guess.

[Balance]

As I recall Balance - you also sold down at around 73c (to half of your holding, yes?). Do you also have an entry point for buying on the way up? Before I buy in again I'd want to see it close for the day with bids sitting at 75c or higher.

I suspect today's boost may have more to do with the fall in the NZD than in any improvement in PEB's fundamentals.

I am comfortable with what I have left holding.

I will invest more again (or sell what's left) when there are further developments regarding sales traction with PEB. Happy to buy more at $1.25 if the developments show that it has upside to $5.00.

[MAC]

As an addendum, Medicare comprises the largest market segment, and unlike the private insurance segment there is only one effective ‘customer’ that being Medicare. Within the private insurance segment PEB need to win over one insurer at a time.

A contract signing might just step that revenue curve along, let’s see.

GOVERNMENTAL 50%
30% CMS (Medicare & Medicaid)
20% VA (Veterans association)

PRIVATE INSURANCE 45%
20% LUGS (Large Urology Groups)
5% Other Urology Practices
20% HMO (Health Maintenance Organisations)

OTHER 5%
5% OSHA (Occupational Health & Safety Associations)

[craic]

dividend of 2297 less approx $600 in fees for the buy and sell fees. Looks like a $1600 prfit on my figures - unless PEB goes mad in the interim and thats about as likely as John Key asking Dot Com around to dinner. I do this regularly with SPK on a 3cps differential.

You have lost more than the dividend already- really working well so far, hypothetically of course.

[Slam dunk]

dividend of 2297 less approx $600 in fees for the buy and sell fees. Looks like a $1600 prfit on my figures - unless PEB goes mad in the interim and thats about as likely as John Key asking Dot Com around to dinner. I do this regularly with SPK on a 3cps differential.

Won't your Spark share price go down ex-dividend though?

[winner69]

dividend of 2297 less approx $600 in fees for the buy and sell fees. Looks like a $1600 prfit on my figures - unless PEB goes mad in the interim and thats about as likely as John Key asking Dot Com around to dinner. I do this regularly with SPK on a 3cps differential.

Or SPK has something go wrong and the price collapses but ........

You left yourself open for that