GXH - Green Cross Health (formerly PHB - Pharmacybrands)

[winner69]

Not sure lack of making money is the problem. Typical annual EPS are somewhere between 9 and 14 cents for the last 10 years - long term average PE of this share is 10.5; Given as well that their doctors are profitable and growing and their community services started to make money again - things should actually all go into the right direction.

In a way this is as well a stock benefitting from the population getting older ...

Assuming that they pay this year again a dividend ... and maybe even a bit more than normal (hey - they need to do something with the money they didn't distribute last time due to Covid) ... I think there is still a bit headroom for the SP :

Interesting to note that the SP used to be still not so long ago (well, 3 years now ...) above $2 - without any significant change in the fundamentals ... who knows, maybe it is a cyclical stock

You never know share price might get back to that outrageous $2 plus ....stranger things have happened.

GXH have a disturbing trend like ABA in that the more acquisitions they make their return on invested capital diminishes.

They are probably (just) covering their cost of capital at the moment but if the past trend continues that could change.

[RTM]

Not sure lack of making money is the problem. Typical annual EPS are somewhere between 9 and 14 cents for the last 10 years - long term average PE of this share is 10.5; Given as well that their doctors are profitable and growing and their community services started to make money again - things should actually all go into the right direction.

In a way this is as well a stock benefitting from the population getting older ...

Assuming that they pay this year again a dividend ... and maybe even a bit more than normal (hey - they need to do something with the money they didn't distribute last time due to Covid) ... I think there is still a bit headroom for the SP :

Interesting to note that the SP used to be still not so long ago (well, 3 years now ...) above $2 - without any significant change in the fundamentals ... who knows, maybe it is a cyclical stock

I hope you are right.
I think the Chemst Warehouse has also knocked them around a bit. Not sure they can compete there.
Disc: Holder (sadly)

[Rawz]

I hope you are right.
I think the Chemst Warehouse has also knocked them around a bit. Not sure they can compete there.
Disc: Holder (sadly)

I went to chemist warehouse out at the airport today. First time I have been there. Wow their prices are incredibly low for the day to day items. And of course we went in for 1 thing and left with 6. A bit like going to Bunnings I guess. To cheap not to buy since you are there.

I wonder if the crazy prices are short term and running in conjunction with big advertising round with Dan Carter.

GXH will/has/is/should not compete and instead be the New World of pharmacy shopping and don't try be the PaknSave.

Disc. Never held.

[nztx]

I hope you are right.
I think the Chemst Warehouse has also knocked them around a bit. Not sure they can compete there.
Disc: Holder (sadly)

The stakeholders certainly have in turn been knocked about in 2020 in terms of Zero Div payouts
while The Dr's Surgeries have been busy with C-19 etc along with follow on to Pharmacy scripts
from my observations locally

This even after if not mistaken the company reporting Surpluses along the way

The market probably anticipates GXH returning to shelling out dividends again in current SP levels
reached - up from around the Buck level in recent weeks ..

[BlackPeter]

You never know share price might get back to that outrageous $2 plus ....stranger things have happened.

GXH have a disturbing trend like ABA in that the more acquisitions they make their return on invested capital diminishes.

They are probably (just) covering their cost of capital at the moment but if the past trend continues that could change.

Don't jinx it - mentioning them and ABA in the same paragraph ....

Their ROCE was last year (if I can trust my spreadsheet) 12.6% - not outrageous, but not a pittance either.

Agree however that the accumulation strategy always carries the risk of moving from picking juicy low hanging fruit towards the ones which are really difficult (and dear) to harvest ...;

Anyway - I don't think that fair value is above $2 for the shares, but I don't think either that the current price is fair value. The truth is (as so often) in the middle :

[Norwest]

I hope you are right.
I think the Chemst Warehouse has also knocked them around a bit. Not sure they can compete there.
Disc: Holder (sadly)

Chemist Warehouse may IPO this year, it would definitively be an IPO that I would be looking at in detail if if eventuates.

[nztx]

Chemist Warehouse may IPO this year, it would definitively be an IPO that I would be looking at in detail if if eventuates.

but the noisiest monkey in the tree is not necessarily the one to follow ..

[winner69]

do I need to 'rubbish' GXH more often Black Peter

share price roaring ahead after the weekends efforts

[BlackPeter]

do I need to 'rubbish' GXH more often Black Peter

share price roaring ahead after the weekends efforts

Maybe you do ... how do they say - there is not such a thing as bad publicity ...

[winner69]

I noticed GXH’s NTA is negative 3 cents ....some investors don’t like that

Not always good ......esp if the $132m intangibles need to be written down.