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09/02/16
01:19
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Originally posted by ASInvest
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Zman, you are spot on.
EBITDA is the most important factor considering the industry but PBT cannot be ignored. Current normalised PBT of $5.2m is rather low considering their debt level. They have 70 clinics - thats $75K per clinic. Rather low for radiology. Some of them must be running at a loss considering that their recent acquisition(s) had mostly larger sites.
The share price reduced from 1.12 to 0.15 and the CEO is receiving 15m options with a strike price of 50% premium to the current level? Does that sound like a reasonable KPI? What about minimum profit levels or at least revenue targets?
The debt is concerning. In particular if they are looking at a further $50m unsecured facility.
I am still not sure about the direct and short-mid term benefit of the $10m Enlitic or the sport sponsorship. That is a lot of money for a company with a market cap of $80m.
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CEO is a pirate or thief.
Created this problem so he can make a killing. He should fall on his sword.
To be honest this is a critical time for this company.
It needs to restructure debt to unsecured bonds the interest charge will increase 50 percent.
Then if it can't improve operationally it stuffed.
This is highly risky atm.
I think better off buying into Primary health or ramsay health and etc...to hedge your existing holdings averaging down is risky.
Anyways sorry for the rant. No ill will.
Ignore my post if you don't agree.