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Paragon Care Limited (Guest Post)

Paragon Care Limited (Guest Post)

The following report has been contributed by Harley Grosser – a private investor. Harley has identified a small company he would like to share his findings and personal beliefs about called Paragon Care Ltd which is aiming to take advantage of the growing aged care industry. Paragon is a distributor and manufacturer of medical equipment, and has attractive prospects if it can continue securing major contracts with hospitals. Investing in small companies that have high growth potential but are yet to produce sustainable earnings is risky, but they can be rewarding for people with the right risk profile and investment horizon. Do not purchase or sell any securities without first seeking and taking personal professional advice.

We should note that the health care industry is a difficult environment to operate in because of the high variability of costs required to provide services. Although the market for aged care is expected to grow with an ageing population, this doesn’t guarantee success for companies in the sector. It does however present attractive opportunities for companies like the one that Harley has identified. Many thanks to Harley for providing such a comprehensive report.

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Disclaimer: The information provided is Written by a private investor as a guest post. The author is not a licensed adviser or an authorised representative of any licensee. The authors views are their own and not those of Roger Montgomery nor of any associate whether licensed or not. The information is general information only. The information does not take into account your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon any information provided in this document and consider seeking advice from a financial advisor if necessary. Investing involves the risk of capital loss. Not all investments are appropriate for all people. The author is a private investor and owns shares in the company referred to.

Note: The author holds shares in Paragon Care Limited.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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11 Comments

  1. mario caruana
    :

    Paragon care have posted a good set of numbers 8/8/16 full year especially with its recent purchases funded by its own debt facilities its earnings is more stable and not as lumpy.

  2. paragon care has got good management ,building a portfolio of quality assets will take time to integrate.watch

  3. justin.penrose.35
    :

    I see PGC has doubled in price since December – how much of that is due to Harley’s report? :)

    • Justin,

      After Harley’s report a prominent media commentator reported that he was planning to buy the shares too. The bulk of the gains, I am told, were generated after the second report. Ultimately the share price, over the long run, will track the performance of the business. In the short run the market is a voting machine….

  4. Justin Carroll
    :

    I have only skimmed through your report so forgive me if you’ve addressed it but wouldn’t one of the risks to PGC also be that the manufacturers of its products, like the manufacturer of Volker beds, might elect to distribute directly to major healthcare providers?

  5. Hi Harley,

    Many thanks for providing this research. I note that Paragon Care Ltd have announced to the ASX that your research has been released to this website.

    Phil

  6. Good on you for putting such effort into this research but given it rates as a c5 in skaffold it hardly looks investment quality. More of a gamble to me. I’d rather put my money on Conan continuing its rise given it is still 30 percent undervalued and of far better quality.

    • Thanks Steve. As mentioned PGC fits my personal investment criteria. I am sure there are many who will decide that it does not fit their own and that’s completely fine.

      • Harley,
        Thanks for your time, thoroughness and willingness to share your research; another fantastic report. I won´t be jumping into PGC either, but will be interested to see how it performs over the next few years.
        Cheers,
        David

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