Member Info for TheMadStork

Justin has been made inside from Wednesday (date of recording) until Friday (date of release). I would imagine this means that something price sensitive will be disclosed on the podcast and RNSed on the day it is released. I'm posting this with his permission.

Just out of interest, which specific bits of the SP tip do you disagree with?

One can never be 100% certain about anything on AIM, but I'm as confident as I can be that it definitely won't be bad news!

Just to update people, the PEL podcast is being recorded on Wednesday, but the company have requested it not go out until Friday, post AGM. They want to be able to freely talk about what will be announced then.

That was in fact me talking in the Twitter group. I spoke to GD at the investor evening on Thursday.

3) No dilution. The board have historically been very reticent to dilute shareholders. There has only ever been one equity placing (in Oct 2013), and that was almost all taken up by directors and a single II. The cash position as of July was not good on the face of it, but the company is now profitable, HSBC has been fully supportive, Finncap say the company is generating cash, the auditors have signed it off as a going concern with no reference to external funding, and the latest RNS confirmed that there were no banking issues. There will therefore (IMO) be no equity dilution. 4) Greater communication. One thing that has historically not been satisfactory is the level of communication from the board to shareholders, especially via RNS. The directors have now taken on board what I and many others have said, and are changing their policy going forward. (Here is the updated comms policy: Http://paragonent.com/investor-centre/qa-forum/communication-plan I expect much greater efforts to spread the story in the near future. One example of this will be Mark Pyrah appearing on Sharepickers in the next few weeks. I'm told that he is expecting to have something specific and exciting to talk about within that timeframe. 5)Upcoming newsflow. Near term newflow may include -quarterly update for the 3rd quarter of 2015, inc contracts etc -possible news on a major JV parternship, alluded to in the 2014 RNS Riddler posted below -further info about the framework agreement with the major retailer mentioned in the latest RNS. ADVFN detective works speculates this may be Hamleys and that it may be *very* lucrative. UPDATE: Retailer confirmed as Hamleys today!

PEL at this price represents an amazing opportunity. The company is in the strongest position it has ever been in terms of the order book, workforce and demand for its services, yet the market cap is near historic lows. This is exactly the time to be buying before the inevitable correction occurs. 1) Margins, profits and mcap. Gross margins are roughly 25%; this is incredibly good for the sector. It means that every £1m over £8.3m revenue (this covers admin costs) brings £250k profit to the bottom line, or £2.5m on the mcap at a conservative 10x multiple. There was £15m confirmed order book through to end 2016 as of July this year, and this is bound to have increased since then, given the recent contract wins. I would personally expect 2016 revenue to be in the region of £12m This is based on the board's stated goal of 20% growth/year, with the target for 2015 having been £10m. Such a result would mean approx £1m net income. On a very conservative 10x multiple that is £10m mcap / 5.3p or £15m / 8p on a perfectly plausible 15x. These figures are very conservative based solely on what has been already been announced. Clearly further large wins could alter the sums significantly. 2)Director confidence. PEL had a historical deferred tax liablity from the acquisition of Paragon Creative in 2011. In July of this year, instead of letting the full sum fall on the company, which they would have been within their rights to do, the directors paid the lions share of the tax bill out of their own personal resources. That screams confidence. Also, the CEO, Mark Pryah, owns 11% of the company, and in total the directors own 20% of the shares. They definitely have skin in the game.

Excellent to see it confirmed that Hamleys is the major retailer. Although they were restricted in terms of what they could say in this RNS, if one does a little digging, it is clear that this deal is absolutely huge for PEL going forward. Potentially 51 stores worldwide, and D&B work to do for each one. I would imagine Hamleys is going to be a huge component of the company's revenue over the next 5 years and effectively hugely derisks the business.

2016 will be looking *very* good at this rate: https://www.facebook.com/ParagonCreative/posts/1226566484025259

Spot on EB. I am sincerely expecting December to be a very very rewarding month for PEL holders

Price action around that time confirms it. Your trade will show up later.

Tweet me @the_madstork and I'll add you to our PEL chat group. Think we hold around 15-20% of the company between us!

W1LLM are you on Twitter mate?

I sold a few of my trading shares at around 2p. Not many. Sold the vast majority on the day of RNS for 1.57 avg. Was a bit of buying around the 1.6 area which I sold into. Not pleased to have to do it but the board have scored such a simple own goal that my confidence in them is totally gone.

Correct. I was fully intending to hold for 12 months, but I feel the total incompetence of the board has ruined sentiment short/ med tee. Doesn't make sense to blindly hold.

The takeover by C.Banner is now formally complete: http://www.hkexnews.hk/listedco/listconews/sehk/2015/1029/LTN20151029992.pdf Would expect some very exciting news very soon,

I am aware of that. The problem is that they are not going to meet those targets and are going to award themselves the shares anyway. Unacceptable.

I believed it to be correct when I said it. Clearly new information has come to light and I will hold my hand up and say I'm very disappointed. Fair enough if tax rules and accelerated building mean eps targets won't be hit, but to vote themselves huge bonuses anyway is just sheer greed IMO. Not happy.

Exactly my thoughts. I have it on good authority that Rockpool are experiencing strong demand for the remaining 3 SPVs. I would expect them to be funded by Nov 30 and that should mean an immediate additional £450k 100% margin income for Plutus.

Justin is very selfishly on his honeymoon this week so podcast will be week after. However, I believe MP was expecting to be able to talk about something exciting this week...