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

[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.