Speculators can even take a good gamble with a 15 cent special dividend for on the book holders by 7 August... Payment Mid August...
:D
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How much room for growth is there for GXH?
Being an NZ based business, there is only so much acquisitions they can complete without straying from their core business.
Good question. I guess their pharmacy wing looks quite saturated. Probably still lots of opportunities in the rest of the medical market (medical centre's, care), but they have not yet proven that they are able to make money in these other areas.
I would see as well lots of potential in increasing efficiencies in the pharmacy market. From a user perspective - they are are hopelessly inefficient compared to many overseas pharmacies, but this might be as well related to requirements of the NZ health system.
So I guess, I do see potential in NZ for a company in this industry to grow their profits, but I am not sure yet, whether GXH management demonstrated so far the skills to utilise this potential.
I've looked into companies that grow primarily by acquisition and also held some. When they start to sway from their bread and butter business, they tend to not do so well in terms of margins and return on incremental capital. Feel this might be the case with GXH.
Other thing is in order to grow eps, they start to pay more P/E multiples for the businesses they acquire.
Director buying (roughly 25k shares): https://www.nzx.com/files/attachments/240188.pdf
Ingenuous question here. Why did they give out such a great special dividend when their borrowings are so high?
What's the debt gearing on gxh?
Directors don't seem to be concerned about the gearing ...
Both Andrew Bagnall as well as
https://www.nzx.com/files/attachments/245710.pdf
Peter Merton slightly pop up their 43,6m odd shares (each) by roughly 31600 shares:
https://www.nzx.com/files/attachments/245711.pdf
(Not sure - could be DRP or director fees, but still good sign - they certainly have skin in the game)