StockTalk

The news of the volume of applications and likely scaling should give the SP a bit of a kick upwards today.

Looks like retail holders will have there application scaled back. Not surprising.

Cancer diagnostics company Pacific Edge (NZX/ASX: PEB) today reminds shareholders that the retail offer to eligible existing shareholders to raise up to NZ$6 million (with the ability to accept over-subscriptions at PEB's discretion) closes at 5.00pm NZT on Thursday, 28 May 2026 (Retail Offer).

The Retail Offer is open to "Eligible Shareholders", who are all persons recorded on Pacific Edge's share register at 7:00pm NZST on Friday, 8 May 2026 as being a holder of Pacific Edge shares and having an address in New Zealand. Eligible Shareholders can subscribe for up to NZ$50,000 of new shares under the Retail Offer.

As at 8am on 25 May 2026, PEB has received applications for $14.0 million under the Retail Offer.

I take problem with the below statement:

"Capital is increasingly directed toward assets and locations where returns are strongest"

Meanwhile $100m went towards debt reduction. Meaning they think debt reduction results in the greatest return for their money (circa 5%?)??

Also is the implication is that they weren't already allocating capital in a manner that maximises shareholder returns?

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I also take issue with the statements surrounding sustainability throughout the annual reports. After all, the social responsibility of business Is to increase its profits. For example, the Board views sustainability not as a standalone workstream, but as part of responsible stewardship across capital allocation, development, operations, people and resident outcomes.

By prioritising "responsible stewardship" over simple profit/value maximisation, management and the board are essentially using shareholder capital to advance its own social agenda without explicit authorization. This creates an agency problem that prioritises philanthropic objectives, forgoing the best use of capital thus eroding long-term value.

I would suggest if Suzanne wishes to pursue philanthropic objectives, she do it with her own massive $2.4m pay package, rather than our precious capital.

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When questioned on the earnings call as to whether Oceania would consider a strategic review to close the NTA gap, Kathryn said this.

I guess what that one is probably pointing at is whether we consider a share buyback. I know that's been a topic of conversation over the last couple of years. And I feel like I've spoken too much, so I'll let Suzanne answer this one.

Whilst a share buyback may be the result of a strategic review, it does not necessarily entail one. Full sale of the business may also be the result of a strategic review and should at least be considered given the persistent undervaluation of Oceania.

Suzzane then said:

Yes. Thank you. So we hear the question and we recognize the discount with accretion possible at the current share price. But right now, our priority is cash generation and the balance sheet discipline that we've spoken to. So we will continue to review, but no update at this stage.

Management and the board recognise the value accretion possible with a buyback, but choose not to act on it. This is to me, a breach of fiduciary duty. Maybe not in the court of law. But in the court of public opinion? For sure.

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Look at the way Kathyrn answered my question here...

Q. Will tax efficiency be a consideration in whether an unimputed dividend should be paid in the future?

A. Yes, that one, I'd probably have to defer to our tax experts. But absolutely, it's something that we look at when we do them. And for us, right now, the priority is very much around turning the dividends back on.

Why does she need to defer to the tax experts? The CFO doesn't know there are millions and millions in tax losses? And imputation credits come from tax payments once the losses are fully used...?

Why would the priority be on turning dividends back on whilst they are unimputed. The ultimate goal is to maximise shareholder value. You do not do that by forcing taxable unimputed dividends down your investors throats who require you to act in their best interests by compounding capital at the historical rates you have through development of new villages OR buying back shares.

The significant increase in the Medicare pricing together with the news "that products covered in the draft are eligible for claim-by-claim reimbursement for the patient population defined in the draft LCD," should see revenue increasing almost immediately. Agreed, Pierre, that 2026 is looking like a transformative year for PEB.

Detailed FY26 Financial results and related info...........

https://api.nzx.com/public/announcement/473221/attachment/469219/473221-469219.pdf

Press release re above

https://www.nzx.com/announcements/473221

Included in today's FY results report:

...final effective coverage of the LCD
expected by the end of the 2026 calendar year.

Novitas confirms, post
balance date, that Pacific Edge can commence claim-by-claim reimbursement for
intermediate risk microhematuria patients in line with the draft LCD.

Looks like 2026 will be PEB's year!

Mark Waller and John Cullity were the CEOs who made Ebos ....as lorriana said started last century.

I don't rate new CEO Adam Hall that highly and under him see Ebos struggling to progress much.

I also wonder how much the Board gets involved in supporting management. Ebos Sydney based but Chair and some other Directors are NZ based ....hmmm

Can't really see Ebos getting back to their glory days with current Board and CEO. ..plodding along is best outlook I fear

Quote from: Basil on May 23, 2026, 05:18 PMSounds interesting and could be a growth area.  Lots of big apartment blocks in Auckland to put vending machines into. 
FY25 to FY26 MFB is growing EPS and top line revenue, I think that's clear to everyone except those who choose not to see it.  I think repayment of all bank debt is a game changer as that free's up a significant amount of free cash flow each year for new initiatives such as what Winner has highlighted.  I'm excited for the future and believe MFB will have an extremely high gross dividend yield in the years ahead assuming we even get there and don't get taken over first.

Believe me LL, over the very long run I did extremely well as a Heartland shareholder.  I didn't get every cyclical call right but I got nearly all of them right and the one I got wrong I escaped from at ~ break even inclusive of dividends during that period.

Total revenue and Np has increased inconsequentially from last year (their worst year) and is less than it was three years ago. And no -  EPS hasn't changed from last year, or for several years - still 3c. Check the accounts.
 The company has been effectively standing still for a number of years. Can free cash flow and increased dividends be maintained when the business isn't growing and economic conditions are worsening? I could be wrong, but the cynic in me thinks management  - which has a huge credibility gap - wants to get out and is  trying to find a buyer, whilst trying to give the impression that the company is growing, when in fact it isn't.
Free cash flow can be enhanced with one-off (and reversible) cuts and deferents. Can it be maintained? - we'll see - but until the company shows genuine growth in the metrics that traditional accountants tend to look for then I see MFB as a trading stock, not a buy and hold.

Simply Wall Street, more like Simply Stupid Street.  I don't know of any professional investor or analyst that takes the "material" they produce seriously.
Material is using a very polite word for it.

Quote from: winner (n) on May 24, 2026, 09:52 AMAs Basil says what's not to like with this trend

Rolling 12 month Free Cash Flow the last few years

Mar 23   1.4m
Sep 23   1.1m
Ma 24   3.5m
SEP 24   5.8m
Mar 25   7.6m
Sep 25   7.3m
Mar 26   8.5m


Maybe $10m in March 2027

There's an old saying that's quite popular with old bean counters like me.  "Cash flow is the lifeblood of business".  That's a very healthy business and a fantastic looking trend.  Thanks for crunching the numbers on that mate.