ABA Abano health

[BlackPeter]

Who is to say Healthcare Partners could not have done a better job?

Fair enough ... seems at this stage difficult to imagine anybody could have done a worse job. We probably will never know unless ... they wait another couple of days and make another offer just shy of $4?

[whatsup]

Down again , not the flavour of the week, big regigging of the financials having to take place with ABA before the market can settle on a value here imo!

[percy]

David Bridgeman article in NZ Herald would not have helped;
"Abano drills into uncomfortable territory with dental backtrack."

[whatsup]

What a mess !!

[winner69]

What a mess !!

Yes it seems an impending train wreck

https://www.nzherald.co.nz/business/...ectid=12217257

Love the bit about the strategic review and hope they 'wont find any more cavities' ....I reckon they will and that extractions will be necessary

[KJ]

Suggest you read Percy's last post as it is very relevant.
ALSO
(1) NPAT includes profit on sale of subsidiary-2.1m.For comparison purposes you need to exclude this & adjusted NPAT is $10.7m,down 4%
(2) 4.2m new shares were issued to fund its purchases of new businesses.Very importantly EPS has fallen 20% from 51.8 to 41.7
(3)This puts the PE on 21
(4)In addition to the share issue it received 17m from the sale of its subsidiary-cash on hand at year end was only $7-where is future funding coming from?
(5) Goodwill in BS stands at $227m.It has paid roughly $1m goodwill per business purchased.Each business contributes approx $47,000 npat per annum
so it will take about 20yrs profits to cover the goodwill.
(6) In the last yr it paid $38m in goodwill for 19 businesses.
(7) ROE was 7.7%
It really needs to be achieving a much better profit for each practice.The worry could come with goodwill writedowns for non performing businesses.Goodwill in
the books exceeds Equity.
Just my thoughts.

My post from August.. a big problem now is $220m in goodwill sitting in the books with write-offs coming.
NTA/share of -$4.08. Yes MINUS!
Basically they have been paying far too much for the businesses.I wonder if it can survive?

[winner69]

So 32% slashed off the share price since announcement

Recent performance suggested a share price with a 3 in front of it was inevitable

Wonder what next week brings

[Lola]

So 32% slashed off the share price since announcement

Recent performance suggested a share price with a 3 in front of it was inevitable

Wonder what next week brings

Relatively new chairman Philippa has had a few hospital passes ...this one to go with Solid and First Gas.

[trader_jackson]

Wowee those guys at Forsyth picked it well yet again... similar to EVO (right before it fell off a cliff), on 10th October Forsyth (when the share price was $8.20) sent out a note to remove Abano Healthcare from their 'conviction list', although they mentioned they were still positive on the stock and the same day released a report with a target price of $10.25.

Just under 6 months later the share price is $3.90 (and they, on 27th march 2019, now have a target price of $5.75)

A kick in the teeth all round.

[winner69]

Share price way back up ...maybe like the phoenix rising from the ashes