Potential 20 Bagger, page-15

http://www.theaustralian.com.au/bus...y-to-think-about/story-e6frg9lo-1227157286489

Pacific Environment (PEH) 10.5c

ENVIRONMENTAL compliance reporting invokes yawns in a corporate audience, not that anyone debates the importance of measuring aspects such as air and groundwater quality.

According to Pacific Environment chief Peter White, there’s a more engaged reaction if, for instance, a mine manager is told he can allow two more blasts a year because of more accurate measuring. With a market cap of only $11m, the little-known entity is an environmental consultant with clients across the mining, smelting, hospitals and ports sectors.

Its blue sky resides in the “clouds”: a software as a service offering called EnviroSuite 2.0.
EnviroSuite will be used to monitor air quality on Sydney’s M5 road project. The deal, worth $4m over five years, is its biggest yet. EnviroSuite this month is being made available to existing clients including BHP Billiton, Rio Tinto and Anglo American.

Pacific Environment is too small (and illiquid) to register on even microcap fund managers radars. With revenue of $12m a year Pacific Environment also lacks scale, but there’s the prospects of at least one acquisition to double this turnover.

Crucially, the company is profitable, having chalked up $1.31m of net earnings in 2013-14 and $1.02m the year before. Spec buy.



Sentiment set to buy.. if you can... Shares appear rare on the sell side