They were $10 not so long ago.
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which almost certainly has to mean they are a better buy now than then
one needs to consider the ongoing viability of the business model namely commoditizing and franchising dentistry. at some point the easy fruit will have been taken and growth will be harder to obtain.
Took a lot of buzz words and good strategy stuff to finally say this year’s profit going to be 10% less than last years. No real surprise here
And cutting back big time on acquisitions ...where’s growth going to come from now?
http://nzx-prod-s7fsd7f98s.s3-websit...450/297360.pdf
Agree percy
A few months ago they said that they acquired 14 practices in H1 and they would contribute $6m extra annualised ebitda
Appears not ...or if they are the existing practices are going back fast
One good thing as acquisitions canned for a while they say (hint) no need for a capital raise.
Would be surprised if share price $4 something soon.
The announcement said npat forecast to be $9m (before year-end review of goodwill)
Oh dear ....wonder how much impairments will be ...ie how much they have overpaid for practices
Non-cash of course so no worries and won’t affect dividends ..that’s good
... and you are probably right.
Interesting question is - is there any price where you think it is a buy again? I guess in a way they do remind me at the (Australian) Greencross (vetcare and animal food). They had an amazing growth phase fuelled by lots of aquisitons - the shareprice boomed and peaked above $10. They made the cardinals mistake most growth by aquisition companies do at some stage - they started to pay too much for additional growth and market realised at that stage that they are in a bubble and any additional aquisition will reduce PE ratio. Shareprice crashed subsequently down to something like $3.70 ... and then somebody came and took the company over (around $5.50).
Realistic scenario for ABA as well?
"and a lift in revenue per clinical day"..?
Try charging customers more per visit,when Aba are known as charging plenty will not work.
Getting dentists to see more customers per day will not work as they have trouble keeping their existing customers,let alone attracting more customers.
Try "add ons" does not work,as customers are not stupid.
Really think their business model is suspect,therefore it would be hard to value the business.
The days of paying too much for "roll outs" are well past us.
They were correct to advise there will be no further capital raise.
Time has shown the money Aba were making was in hearing.Since sold.