ABA Abano health

[Joshuatree]

Always happy to disagree.
I rate ABA as an avoid.

Too true ive avoided the dentist for a while, thanks for the reminder

[macduffy]

Thanks, percy. Narrowed down to one mind now and will avoid ABA meanwhile!

[jg8512]

the very last comment in the ABA presentation for the FY18 results is:

"More information on underlying earnings, which is a non GAAP financial measure and is not prepared in accordance withNZIFRS, is available at www.abano.co.nz/underlyingearnings"

But when you go to that web address you get:
Page Not Found

Sorry, the page you have requested does not exist or has been deleted"

I wonder what happened to their underlying earnings

[Rep]

the very last comment in the ABA presentation for the FY18 results is:

"More information on underlying earnings, which is a non GAAP financial measure and is not prepared in accordance withNZIFRS, is available at www.abano.co.nz/underlyingearnings"

But when you go to that web address you get:
Page Not Found

Sorry, the page you have requested does not exist or has been deleted"

I wonder what happened to their underlying earnings

Try this link:
https://www.abano.co.nz/investor-inf...l-information/

[tim23]

A lot of capital required for acquisitions,which have a very poor return on capital..
Very little growth from each practice.
Revenue growth is mainly driven by acquisitions.
I do not think dentist have "pricing power".
A visiit to the dentist is easily put off when times are tough.
Australian mortgage requirements,ie a stop to interest only loans will cause hardships.
Increasing mortgage interest rates will work against ABA's clients too.

I went recently to an ABA outlet 1st time in some years price charge floored me! Good point about tough times tend to agree with that - no idea how peopke can afford it.

[percy]

I went recently to an ABA outlet 1st time in some years price charge floored me! Good point about tough times tend to agree with that - no idea how peopke can afford it.

I think we have all know some dentists charge the moon.
Word gets round very quickly which ones to avoid..

[oyvei]

Does anybody has an idea why share price is going down the hill despite record profits, more clinics bought in AUS and NZ? is it a good buy at $8.20 or share bound down hill?

[BlackPeter]

Does anybody has an idea why share price is going down the hill despite record profits, more clinics bought in AUS and NZ? is it a good buy at $8.20 or share bound down hill?

Hard to say ... some around here are no particular Abano fans.

On the other hand - no announcement pointing to something terrible and the only trigger for this downturn I can seen seems to have been the dividend payment. These things do happen. Some punters discovers the huge drop due to going ex dividend, panic, run for the hills and hit this way some other punters stop losses.

Lacking any other detrimental company specific information would I say the chance that Abano is close to an (at least) local minimum is higher than the chance this drop continues unabated - i.e. no matter whether we see it as sell or not - now might not be the best time to do so.

Actually - Just saw it went this afternoon up a couple of cents - maybe we are already there?

More difficult is the question, whether this is going to be just another ripple in the downtrend or a change to Abano moving back to its previous glory ;

I guess the PE used to be a bit high closer at the $10 mark, but now at $8.20: forward PE is 14.1 and forward CAGR 14.9 - PEG below 1!

Obviously - we should not get too excited, ABA had a pretty patchy (though not too bad - historic long term PE is 10.7) earnings history in the past, but some analysts seem to see a continuation of the recent EPS growth. If they are right, than it well might be a reasonable investment at this price.

Analyst consensus (4-traders) is $10.15 and recommendation between hold and outperform. Here we go.

[JayRiggs]

I've bought into ABA last week shortly after it went ex-div. Got my timing a wee bit off.
They look to be pretty consistent with their growth, always meeting their own guidance. Expecting a decent +10% a year going forward.

The other 2 big dental stocks Pacific Smiles and 1300 Smiles have kinda been struggling the past few years and Abano hungry to take market share off em.

[JayRiggs]

And I really like how they've ditched their other businesses like radiology and audiology to focus just on dental.
Shows conviction of their strategy.