Should You Buy Paragon Care Ltd At This Share Price?

What happened to the PGC share price?

Paragon Care [ASX:PGC] was on an incredible rally for most of 2015. However, we have seen a drop in its share price lately.

In a recent study at Port Philip Publishing, I uncovered Australia’s most interesting healthcare stocks. Some of them gave triple digit returns for the year. Paragon Care is a very interesting stock because it has the highest revenue growth in the group. Its P/E evaluation is not all that high relative to a few others in the industry. This means it has high revenue growth and a relatively lower P/E. Making it very interesting.

What should you do with PGC shares now?

The study I conducted was on healthcare companies that offered great upside potentials and are reasonably priced.

In terms of market capitalisation, CSL and SHL are the largest companies. They have produced reasonable returns and certainly offer positive revenue growth.

What’s most surprising is most of the companies in our study pay a dividend, such as PGC. The only two companies that don’t are Compumedics Ltd [ASX:CMP] and Ellex Medical Lasers Ltd [ASX:ELX].

However, there is no denying that Compumedics has been a super-performing stock in terms of return on investment.

In terms of trading, an optimised long/short strategy should have you holding onto a long position for the current week.

Ken Wangdong
Emerging Market Analyst, New Frontier Investor

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