STTCOMP PKD, FA LONG
PKD is an innovative company that offers flat pack concrete car park system.
Market Cap: 18M
Cash: 5M
No. of shares issued: 39M free float + 36M escrowed until Dec 2019
Shares owned by directors: 48%
For the following reasons I think it's worth to keep an eye on PKD, it may offer some great investment/trade opportunities in the next 1 - 3 months.
- Industry. City land becomes more and more expensive in the last 10 year, and at the same time, there are more cars available in these crowded cities. There is a strong demand for flexible and inexpensive car park system that can be built efficiently, less costly and can add/subtract levels or completely be relocated if needed. PKD is currently working on its first commercial contract, building a one level car park for city Subaru car dealership in Perth CBD. The project has commenced construction phase since the end of Feb, and by the contract with clients, it needs to be complete within 12 weeks. My guess is it will be sooner than that, as PKD wants to demonstrate their capability of building their car park project in a much smaller time frame compared to traditional car park building.
- People. Bronte Howson, the non-executive chairman was the previous CEO of the Automotive holding group(AHG, 1.2B Market Cap) and spent 17 years in that Australia's large retail car dealership. Bronte holds 5.6M PKD shares and surely would like to see its success. Once City Subaru project is successfully delivered, you would imagine it won't be too difficult for Bronte to introduce more commercial opportunities from other AHG branches, leading to agreements & commercial contracts. Bryant Mclarty, the head of Mac Equity Partners and PKD's advisor, holds 3.8M shares and bought a small amount(just over $10K) of shares on market lately. Basically, Management and advisor have the capabilities and they are loaded.
- Register. Tight register with about close to 40M free float. On 14th March, 1.6M(4% of the free float) shares were traded, looks like someone get set. If FA events come, this can run hard.
- The stage it is at FBR ran from 2c(at the time similar MC to PKD, about 16M MC) to 16c in 2 months(Aug 2016 - Oct 2016) during the time when it's building the Prototype Hadrian X, the market has an expectation that commercial contracts are likely to arrive once the prototype is complete. PKD IPO at 20c, and took 3 months to prepare for its first project(sorting out the key contractors, city council building permit etc.), we should see this project as PKD's prototype, as once complete, this is the first tangible sample of its products. Close to or after the project completion, I think PKD will run a few investor presentations for market awareness. At the moment, it's still pretty much under the radar.
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