Following up on yesterday’s thoughts, I took a look at the numbers underlying past / future performance for Pacific Current. It doesn’t seem incredibly compelling without getting more comfortable about how this business will grow over the next five years beyond the initial bump that gets it to ~10x earnings by FY23 (Aussie fiscal year).
What could make this more interesting is:
- If there is high confidence on the major portfolio components’ growth over the next 5 years
- If they take leverage from 0 –> 2x and acquire a high quality business at a low multiple
- If they can raise a sizable 3rd party fund, changing the business model of the company
I plan to reach out to the company to learn a bit more about them.
Disclosure: I don’t own shares of PAX.AX, but may buy shares at any time. This isn’t investment advice, do your own work.