Q: I have held PBH for 5 years now. I like the increasing dividend and have seen a small amount of capital increase as well. I just added to my position. They are forecasting an increase in sales and EBITA of 50% or so over the next 3 years. With all the capex being spent on expansions some of this should help expand the margins as well. If this all works out I expect there is a reasonable chance of good capital expansions in the future as well as the dividend increases I have been getting. Any thoughts.
5i Research Answer:
PBH certainly still has some potential, in our view. It has been a bit frustrating, but it offers a growing dividend and good EPS growth is very much expected. It needs to execute, but has a good track record. We also might expect further acquisitions for it to boost its growth profile. We would remain comfortable owning it.