I couldn't find a thread for PGA, so here it is.
Current Market Capital of $279 million
Photon Group Limited (PGA) offers a number of integrated marketing and communications services. PGA operates through its five strategic divisions: Strategic Intelligence; Integrated Communications and Digital; Internet Marketing and Communications; Experiential and Field Marketing, and Specialised Communications.
PGAs strategy sets an equal focus on organic and acquisition growth. The strategy is to diversify its income stream by not being dependent on any one form of media, marketing sector, individual company or client. The company has a new corporate structure comprising of five divisions and intends to expand into international markets with its existing businesses that will be supplemented by acquisitions of local companies. The company has steadily built its international presence in the US, UK, and South East Asia including China. The company has entered into the high growth sectors of research, digital, internet, field marketing, and specialised services such as PR. The revenue from Experiential and Field Marketing division accounts for 36% of its total revenue in FY07, followed by 27% from Integrated Communications and Digital; 16% from Specialised Communications, 13% from Strategic Intelligence and 8% from Internet Marketing. With regards to EBITDA by division, the internet marketing division accounted for 21%, which is second to 33% from Experiential and Field Marketing division only. Photon Group reported NPAT up 25.90% to $8.64m for the half-year ended 31 December 2007. Revenues from ordinary activities were $245.61m, up 90.2% from the same period last year. Diluted EPS was 11.20 cents compared to 10.07 cents last year. Net operating cash flow was $13.41m compared to $17.93m last year. The interim dividend declared was 11.5 cents compared with 10 cents last year.
Credit Suisse 30/06/2008 Upgrade to Neutral from Underperform
Photon Group's recent share price retreat has triggered a Credit Suisse upgrade to Neutral from Underperform.
It maintains its $3.75 target price.
Merrill Lynch 05/06/2008 Downgrade to Underperform from Neutral, High Risk
Target $3.50 (was $4.40). Along with a mixed trading update the company unveiled a capital raising and to factor this in the broker has cut its earnings estimates by around 19% in FY09.
With little scope for any share price outperformance the broker has also downgraded to an Underperform rating on the stock.
Currently trading @ $ 2.78 as of close on the 1st August, 2008