Often first stock screen for me is roic - does the company return its cost of capital. Ultimately the market added value of the company is the future sum of the excess returns.
Aba only achieves 5% or 8% ( depending on how you treat the loss from associates) - way below its cost of capital .... Some would say value destroying company.
Also hard to see where excessive turns ( over the cost of capital) will come from as organic growth seems a struggle and acquired growth is expensive
Lets say roic covers cost of capital ....fair value then is book value ( cause no added value being generated). At the mo aba market cap 111 mill v book value 90 mill. Seems fair enough
I always have had a morbid fascination with the old vision group now vision eye institute in Australia ( vei) and followed their many ups and downs ( mainly downs) over the years
Similar sort of model that never seemed to work out financially as it should ....although after many cap railings vei seems to be doing ok at the moment on the asx
I always have had a morbid fascination with the old vision group now vision eye institute in Australia ( vei) and followed their many ups and downs ( mainly downs) over the years
Similar sort of model that never seemed to work out financially as it should ....although after many cap railings vei seems to be doing ok at the moment on the asx
Don't know what model is similar,however if they [or EBO] followed GXL model for vets in Aussie we will be in for a fun ride.
On FA I have always found ABA difficult to come up with any sort of valuation.At the beginning of last year I had them on my add to list,but they took off like a rocket,before I brought any more.
I appreciate Sparky's valuations and trust you will do more work on them Winner69.
Winner, great feedback. Yes, an excellent company. It's the stock I'm more worried about due to liquidity, though I see it's back up to $6. Nice for those who bought in at $5.60 on recent weakness.
Originally Posted by SparkyTheClown
Winner, great feedback. Yes, an excellent company. It's the stock I'm more worried about due to liquidity, though I see it's back up to $6. Nice for those who bought in at $5.60 on recent weakness.
A company I also had on my radar to buy - so thank you Sparky for your comments re "why dropping" on the 2/5/13 which identified this opportunity at $5.56 fo me, wish I had bought more. But was happy in lieu with adding to my initial DIL stock (purchased 03/2013 $5.25) same day as it dipped to $6.85. Agree with sentiment read several times on forum re shares in general - to be cautious at current buying levels. Wish I had had the time I now find I have back in 2008 when I bought a modest portfolio to have found and learned from the forum - patience, identify and don't be afraid to hold cash. Thanks also to Winner for taking the opportunity to do some research.
The thing that puzzles me that even though spending $75m on buying things operating cash flows have remained pretty flat
While revenues have grown impressively from $124m in 2009 to $207m in 2012 (from the acquisitions) Operating cash Flow is still around the $20m (see chart) .... spending heaps to drive the top line but not converting any of the revenues growth into cash just seem to make sense
I am no Abano expert, but I get revenues of 187.2m for 2009. It was 124m in the year before that (2008).
I think that discrepancy would go some way to explaining things? But regardless of that their ebitda margins appear to have halved from 16% in 2009, to 8% in 2011.
I am no Abano expert, but I get revenues of 187.2m for 2009. It was 124m in the year before that (2008).
I think that discrepancy would go some way to explaining things? But regardless of that their ebitda margins appear to have halved from 16% in 2009, to 8% in 2011.
Cheers
Sauce
I should have said so but I was using the revenues in the cash flow statement ....interesting they are different from the p&l revenues eh .....might have a look at that
Yes margins don't look too flash compared to the past
I am no Abano expert, but I get revenues of 187.2m for 2009. It was 124m in the year before that (2008).
I think that discrepancy would go some way to explaining things? But regardless of that their ebitda margins appear to have halved from 16% in 2009, to 8% in 2011.
Cheers
Sauce
Sale of Bay Audio may account for it.The hearing aid business worked on huge margins and made huge profits.
Dental,and other parts do not have same sort of profits.Good earners,but modest profits.
Should they get the hearing aid business "model" working in Asia we will see the huge profits again,but is proving to be taking longer and is not so easy.Taiwan is starting to work,but don't think Hong Kong is, and not sure about Singapore.But well worth going for.I think they are getting a lot of support from hearing aid manufacturer Seimens.
Sale of Bay Audio may account for it.The hearing aid business worked on huge margins and made huge profits.
Dental,and other parts do not have same sort of profits.Good earners,but modest profits.
Should they get the hearing aid business "model" working in Asia we will see the huge profits again,but is proving to be taking longer and is not so easy.Taiwan is starting to work,but don't think Hong Kong is, and not sure about Singapore.But well worth going for.I think they are getting a lot of support from hearing aid manufacturer Seimens.
Interesting
There is an interview on Radio Live with CEO .... near the end he his asked what are the priorities and Asia is only 3rd or 4th
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Originally Posted by winner69
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