ADVISOR WATCHLIST
Mike Baker *
Provisional Advisor mbaker @ burrell . com . au ( 07 ) 5353 5224
For those investors interested in getting some exposure to small caps , I recommend a business called People Infrastructure ( PPE ). It is a workforce management company specialising in contract employment and HR outsourcing services throughout Australia and New Zealand . The business predominantly focuses across the healthcare , community services and IT industries and it is expected to be a beneficiary of a broader re-opening of healthcare facilities across the country post-COVID . Over the past five years the business has grown revenues at a compound rate of 24.8 % p . a . and EPS at 21.4 % p . a . Key management personnel are major shareholders in the company , aligning themselves nicely with shareholders . Trading on 16x trailing earnings , net cash on the balance sheet and highly cash generative , the stock still represents good value with potential for earnings upgrades as the broader economy starts to repair the damage brought on from the lockdowns .
* Mike Baker is a Provisional Adviser under the supervision of Chris Hampton .
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