ABA Abano health

[BlackPeter]

Needed recently the services of an audiologist and went first to Bay Audiology (though noticing that Bay Audiology NZ is not anymore part of ABA, Bay Australia and Asia still is). Service - o.k. Quoted prices for hearing aids - outrageous (as with many other established audiologists). Rather quiet as far as customers are concerned.

Looking at their quote - these guys must make megabucks if they sell their stuff (which they didn't in my case ... I got a couple of latest technology and very comparable hearing aids from a different NZ dispenser for less than 40% of the price Bay Audiology quoted for their products). So I guess - maybe their pseudo monopolistic behaviour trying to extort a bad informed and captive customer base does not work anymore in the internet area?

Again - I realise that ABA sold out of Bay Audiology NZ, but attitudes might not change that fast. So I am wondering, whether this company maybe missed the changing times ... could be one of the reasons for Aba's continuous SP slide?

[Rep]

Needed recently the services of an audiologist and went first to Bay Audiology (though noticing that Bay Audiology NZ is not anymore part of ABA, Bay Australia and Asia still is). Service - o.k. Quoted prices for hearing aids - outrageous (as with many other established audiologists). Rather quiet as far as customers are concerned.

Looking at their quote - these guys must make megabucks if they sell their stuff (which they didn't in my case ... I got a couple of latest technology and very comparable hearing aids from a different NZ dispenser for less than 40% of the price Bay Audiology quoted for their products). So I guess - maybe their pseudo monopolistic behaviour trying to extort a bad informed and captive customer base does not work anymore in the internet area?

Again - I realise that ABA sold out of Bay Audiology NZ, but attitudes might not change that fast. So I am wondering, whether this company maybe missed the changing times ... could be one of the reasons for Aba's continuous SP slide?

"Attitudes might not change that fast" ??! Really ?!!
Abano sold Bay Audiology (NZ)in 2009 to NHC- back then Auckland wasn't a Supercity, David Bain was in court for a retrial and was subsequently acquitted and Helen Clark headed off to the UN. I think Paul Holmes was still on TV and Christchurch was still a low risk zone for seismic activity.

As far as I know, Bay in NZ has changed ownership again since.

[BlackPeter]

"Attitudes might not change that fast" ??! Really ?!!
Abano sold Bay Audiology (NZ)in 2009 to NHC- back then Auckland wasn't a Supercity, David Bain was in court for a retrial and was subsequently acquitted and Helen Clark headed off to the UN. I think Paul Holmes was still on TV and Christchurch was still a low risk zone for seismic activity.

As far as I know, Bay in NZ has changed ownership again since.

True - 6 years can be a long time, even if I am not sure whether your examples are particular helpful in conveying this message. Not sure whether I would call Auckland a supercity these days (but super problems), Bain is still fighting to get some compensation for spending many years as an innocent man in jail, Helen Clark is still with the UN and NZ has still an arrogant government not interested in what its people really want (even if its colours changed). Just responding - maybe we should continue the discussion about above topics on the relevant threads.

Question: Do you have any evidence that things changed after the split for either Bay Audiology NZ (to the worse) or for Bay Audiology Australia / Asia (for the better)? They still look like siblings to me, both still using the same logo and their webpages looking still quite similar as well.

[Rep]

Amplifon SPa owns Bay in NZ. Have a web search on Bay and Amplifon - and that might point to some changes.

The references to 2009 were to reflect that a lot has happened in 6 years.

[BlackPeter]

Gosh, another well visited thread ...

Anyway - half year numbers are out - and actually don't look too bad: https://www.nzx.com/companies/ABA/announcements/275453

Despite divesting less stellar performers they managed to keep revenue and EPS basically on the level it was prior to the divestment of the pathology branch thanks to good growth (mainly) in the dental business. Revenue at the upper level of guidance - and outperforming analysts expectations.

Positive outlook and a story which makes sense (well, IMHO). I put my toes back into the water and bough a small parcel.

[percy]

Trust it was a very small parcel as Craig's latest research has downgraded ABA from a buy to hold,citing poor growth from dentistry and audiology, and concerns about ABA's stretched balance sheet.

[BlackPeter]

Trust it was a very small parcel as Craig's latest research has downgraded ABA from a buy to hold,citing poor growth from dentistry and audiology, and concerns about ABA's stretched balance sheet.

it was small ... and yes, their leverage is sort of at the upper end of where it still might feel comfortable. Went up over the the last 12 months from 58.7% to 61.8%. Mind you - its both close to 60% (which I still would consider as ok-ish). Chorus has from memory about 80% leverage.

Haven't seen the Craigs report, but poor growth from dentistry? From the segment information: Dental revenue grew in the last 12 months by 16%, dental EBITDA by 12%. Admittedly not stellar, but not too bad either.

Audiology is another subject. While it had as well 11% revenue growth (but from a much lower basis) - I agree, there is still a lot of improvement potential (lots of fat, waste and inefficiency) in the audiology industry in this country (and presumably Australia). Certainly an opportunity for Abano, but not sure, whether they seize the opportunity or just continue as another inefficient "me too", trying to rip off old people by offering them ridiculously overpriced hearing aids and losing this way many customers to cheaper (and better) service providers.

Anyway - I agree it is sort of a mixed shop. Still lots of potential - time will tell, whether the new CEO is seizing the opportunities or just treading water.

[trader_jackson]

Worth another look?

[BlackPeter]

Bugger - my order of 7.75 was just about to be filled - and here comes another hostile takeover offer! Could have waited - couldn't they? No sense for decency anymore in these times ;

Just wondering whether the takeover offer ($10 per share for 31% - to bring Healthcare Partners up to 50,01%) works out this times. Its made by the usual suspects: Peter Hutson, Anya Hutson and James Reeves. ABA is notorious for fighting off hostile takeovers from this group. Interesting times ahead - though possibly just more wasted board time.

[macduffy]

I don't know about "notorious", more like "heroic" for obtaining better prices for shareholders?

Everytime I go to "Lumino the Dentists" I come away thinking I'll buy some of these - but never have!