I may be the latest person to the PME party in existence, but I’ve decided to take a bit of a look at it. I have little intention of buying it but I think there could be a lot to learn from its story about what to look for in searching for 100 plus baggers. One of my main questions, given the traditional view that “your margin is my opportunity” is how does PME sustain a 90% plus gross profit margin, which place it amongst the very best companies in the world on this measure. I know it’s well managed but this alone doesn’t explain it. I’m thinking their performance is more likely a result of their ability to capitalise on an inherent aspect of their industry, which therefore lends itself to a Porter’s 5 forces industry analysis. I’ll be working through this in coming days. More to come.