Q: A previous question was answered on expected PNG earnings. The concensus was provided. Estimates EPS 1c; revenue $24.05M. Expected November 13 (not officially announced, however). Does 5i have a different view? What are your expectations? Since the bought deal closed a week ago, the stock has been very strong. Is it getting ahead of itself? Is it best to sit and see what happens with earnings before buying?
5i Research Answer:
Our views would be similar; with many different contracts announced in the recent past, the next quarter and further contract announcemetns are likely more important than the quarter to be announced soon. Its strength might relate to buyers of the deal getting cut back on allotments. When a small cap moves it is tough to time perfectly. With new investors from the financing, as long as fundamentals meet expectations interest will likely stay high. We do not like basing a decision on one quarter, however. If PNG is going to 'go', there will be opportunities to buy it for years. We would still be OK with a small position.