Ah yes. The old "trailing PE" trick. It's 83! Better sell! In...

Ah yes. The old "trailing PE" trick. It's 83! Better sell!
In the last interview, Sam, if i may take a liberty, said that Mayo, Yale and a couple of the other big contracts would only begin to make meaningful contributions to revenue this HY. If we combine the contractual value of those contracts and divide by the terms we get about $12 million extra a year for the next six years. I'm unclear if these contract values are in USD of AUD. Fairly easy arithmetic, even for Agent 86.
Sure, there will be tax to be paid, but all costs except sales commissions are already taken care of in the underlying P&L.
I'm projecting $8.75 - $11 million for the HY and $20 - $27 million for the FY, or a forward PE of 35 - 55. And that doesn't take in to account any contractual over performance or new contracts.
Mercy has now taken up the archiving option. It's very possible that Mayo and Yale may follow suit. That's another $40 - $50 million over five years right there. Implementation we have been assured is a quarter of what the opposition can achieve, and the PME slipper is already in the door.
New customers? Mandated digital archiving by years end = contracts.
From a sectoral point of view, where does PME sit? Is it a radiology stock? Medical devices? IT? Archiving? Data? The truth is, it as all those things.
And because they never raise cash very few brokers cover them.
My view is that at some point they will identified, if they haven't already been, as a great growth opportunity, on the one hand, or a compelling take-over by Big Data or entities in the medical devices/applications fields. When that happens we can forget about trailing PEs and one year forward earnings estimates.
Remember back to CSL in the 80's or 90's? Floated off by a grateful government. Trading at 50 cents. Then they bought a plasma manufacturer in Switzerland and they started going up by multiples day after day. ALT analogue? Very possible.....