MM’s thoughts on PGC & AZJ?

Hi Ian,

Paragon Care (PGC) 36.5c – this $228mn medical equipment business has endured an awful 4-years where its price fell from almost $1 to sub 10c, it may have bounced post COVID but we prefer businesses that went into COVID strong as opposed to struggling.

Aurizon Holdings (AZJ) $3.64 – this QLD based rail freight business continues to consolidate around the $3.50 area where we believe it represents solid buying, especially from a yield perspective i.e. its estimated to yield close to 7% over the next 12-months. However investors shouldn’t be too complacent as its recent earnings report saw both its dividend and coal haulage outlook cut, the dividend reduction being more of a requirement for the company as it moves ahead with its $2.35bn acquisition of One Rail Australia.

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Aurizon Holdings (AZJ)

LAST UPDATED 18/02/2022 15:33

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Aurizon Holdings (AZJ)

LAST UPDATED 18/02/2022 15:33