GXL Greencross Limited/ Veterinarians

[percy]

Result announcement included a forecast of $3.4-$3.7m NPAT for FY, although half year was slightly down (last year was a strong first half). Div is up and annual div total forecast at 6cps, so will make it a good yield.

I got the courage to pick up some more at 70cps prior to announcement when the selling lost pace and buy side firmed. Now sitting 87cps with a much healthier buy side, but still pretty illiquid. My valuation currently at $1.02, but if the share price can pick up to around or above, then more acquisitions may be possible with less dilution.

Thanks for your update.I am sure you are right that strong SP will lead to more acquisitions.

[Lizard]

I got the courage to pick up some more at 70cps prior to announcement when the selling lost pace and buy side firmed. Now sitting 87cps with a much healthier buy side, but still pretty illiquid. My valuation currently at $1.02, but if the share price can pick up to around or above, then more acquisitions may be possible with less dilution.

Finally getting to that $1 mark that I valued at a few months back, after having announced some recent acquisitions, confirmed full year guidance at 12-13cps eps, and final div of 3cps to make total of 6cps. Also Open Briefing confirmed expectation of ongoing 15%pa eps growth. Still a little on the small and illiquid side to attract much institutional interest, otherwise could have looked for a re-rate to $1.80+ over next 12 months. However, with debt risk still haunting investor memories, $1.40 is probably more realistic to hope for.

[percy]

Finally getting to that $1 mark that I valued at a few months back, after having announced some recent acquisitions, confirmed full year guidance at 12-13cps eps, and final div of 3cps to make total of 6cps. Also Open Briefing confirmed expectation of ongoing 15%pa eps growth. Still a little on the small and illiquid side to attract much institutional interest, otherwise could have looked for a re-rate to $1.80+ over next 12 months. However, with debt risk still haunting investor memories, $1.40 is probably more realistic to hope for.

The highlight of to-day's Open Briefing for me was "APPOINTED AN ACQUISITION FACILITATOR".My goodness what I would give to have such a title.Lizard have you factored a FACILITATOR into your projections.? Must be worth an extra 5% growth.!!! What sort of employment history would you require.? What sort of references would you have.?

[Lizard]

Green by name, green by nature... someone using the opportunity to accumulate.

Probably should take it as a selling opportunity and free up cash for the real bargains that might emerge here, but I always find it impossible to sell my value stocks going into results season!

[percy]

Green by name, green by nature... someone using the opportunity to accumulate.

Probably should take it as a selling opportunity and free up cash for the real bargains that might emerge here, but I always find it impossible to sell my value stocks going into results season!

Be careful,you may be selling to "an acqusition facilitator".!!!!!

[Rodin]

Had a good writeup in the weekend Eureka Report. Still looks fairly cheap with BGF Equities forecasting FY11 EPS of 13 cents and FY12 EPS of 15 cents. Their price target is $1.45 (40% upside) which stills puts it on less than 10 times earnings.

[Lizard]

Result out today in line with previous announcement. Has run hard up to $1.22, which seems like fair value for now. Will be interesting to see if they look for more equity so their acquisition facilitator can keep shopping...

[Lizard]

Dropped back to $1.03 after going ex-dividend. Briefing today sparked a little interest, confirming they are well on track for at least a 15% increase in eps this year and planning 7cps in total divs.

They seem to be making a habit of communicating well and tackling the hard issues openly (free cashflow in a roll-up model, where the funding comes from and what gearing levels they are comfortable with/strategy for managing gearing etc, etc). Overall, they seem to be pushing the roll-up model as hard as they can without red-lining the rev-counter.

[mark100]

I grabbed a few today Liz. Been following for a while but this is the first purchase

[4be]

Dropped back to $1.03 after going ex-dividend. Briefing today sparked a little interest, confirming they are well on track for at least a 15% increase in eps this year and planning 7cps in total divs.

They seem to be making a habit of communicating well and tackling the hard issues openly (free cashflow in a roll-up model, where the funding comes from and what gearing levels they are comfortable with/strategy for managing gearing etc, etc). Overall, they seem to be pushing the roll-up model as hard as they can without red-lining the rev-counter.

What do you mean by a roll up model Lizard?

Cheers
4be