ABA Abano health

[percy]

In Australia recently there was a take over of a huge dental group.From memory [sorry I can't remember where I read it] it was at a lot higher valuations than ABA have been paying.So ABA have been buying well.
Liquidity is poor,however the company is very well managed in the growing health sector.I have done very well with our holdings,and I expect ABA will reward us well over the next 5 to 10 years,so SP fluctuations are not a big concern.

[Blendy]

This all sounds very interesting. Presumably since they've offered a price higher than market value, which was rejected, and are now moving into takeover mode, they see this stock as well undervalued and good future potential. I await with interest to see how this unfolds.

DISC: ABA makes up a reasonable chunk of my portfolio

[Blendy]

haha, thanks! I am a little overweight in ABA so this could be the perfect opportunity to cash up some if the price gets really good... I see the buyers are lining up already! $6.11

[Blendy]

wow, buy bids are up to $6.49...

[zigzag]

It is my reading of the situation that ABA has been paying out more in dividends, than its actual profit, for the last year or two. They said that this was to keep faith with the shareholders while the company was refocussed after the sale of NZ Bay Audio business. But I think it has also served as a takeover defence i.e. it has kept the share price up, and also kept debt on the balance sheet, which made it less attractive to a potential acquirer. However as revenues have rebuilt the DPS and EPS gap has closed. So it should actually start growing ( share price wise ) again over the next 2-3 years. Now could be a good time to make a bid. ABA is my third largest holding, after HBY and DIL.

[Blendy]

I would be very happy with $6.75. Do you think it's actually likely to go much above that today?

[Blendy]

yeah, it was a rhetorical question really I hardly expect anyone to know the future!

[percy]

Nice to find ourselves again "well positioned!"

[zigzag]

I wonder how they will price the SPP now. 3 million shares at $5.00 would do it for me. Would the possibility of a takeover bid alter the equation? What date/timeframe will they base the price on?

[winner69]

So Mr Hutson had another go over how weekend and got told to take a running jump.

See ABA finally answered the question Shoeshine NBR has been asking and no getting a response 'did you know about Hutson approach before July 30 when you first talked about a cap raising?.

I think the answer was a vague no

Archer / Hutson keen ......prob smarter and meaner than the ABA board ....and might go to 8 bucks eh

Current price a bit over the top on normal basis ....takeover another story