I agree. The market seems a little cagey with this stock - justifiably I guess. PCG has a testing period of expansion in the recent past but that seems to be going well.
The $6.6m FY06 NPAT projection was first mentioned back in Sept. This has been reiterated consistently since, and now in May, it is confirmed (it may even be exceeded). Given a risky burst of expansion largely behind it now, and the low PE on a significantly expanding business, this is positive, and lowers the price risk at this level.
That said, the PCG challenge is to keep ahead of developments in the fast-moving tech (memory) business. So far so good but performance over time is the test of management of course. As with all IT companies it will be fascinating to see how management deals with the challenges of business expansion along with technology advancement.
LGD Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Not Held
