As mentioned in their 2016 annual report, Asian American Medical Group (AAMG; ASX: AJJ) appears to have many indicators of potential gold mine such as: a. Substantial stock holding by management and no debt; b. Operating in highly sought after areas of health; c. Strategic collaboration with a US based global health enterprise; and d. Located in Asia, the most populated region on the globe.
Shareholder information (annual report 2016, page 90-92)
The total holdings of the twenty largest holders of ordinary shares are above 95%. Five substantial holders/directors hold more than 85%. Executive Chairman alone holds about 50%. As per ASX announcement on 5/5/2017, the Executive chairman has recently acquired 8,499,930 shares for a consideration of $1,019,991.60
Corporate profile (annual report 2016, page 6)
Asian American Medical Group (“AAMG”) is based in Singapore and has been listed on the Australian Securities Exchange since September 2009. The Group’s operations include the Asian American Liver Centre Pte Ltd (“AALC”), established in 1994 in Singapore, and Asian American Radiation Oncology Pte Ltd (“AARO”), established in 2015.
The Group entered into a strategic collaboration in October 2012 with U.S.-based US$13-billion integrated global health enterprise University of Pittsburgh Medical Centre (“UPMC”). UPMC, ranked No. 12 on the U.S. News & World Report Honor Roll of American’s Best Hospitals, is affiliated with the University of Pittsburgh Schools of the Health Sciences and is a pioneer in the field of transplantation. This collaboration has enhanced AAMG’s clinical capabilities through shared protocols, rigorous quality standards and technology and also created a platform for AAMG to expand into other countries in Asia such as Malaysia and Myanmar.
AALC, one of Asia’s foremost liver centres, is led by renowned hepatobiliary expert and liver transplant surgeon, Dato’ Dr Kai Chah Tan (“Dr KC Tan”), who helped start the Liver Transplant Programme at King’s College Hospital in London, U.K., and pioneered the highly successful Living Donor Liver Transplantation (“LDLT”) Programme in Singapore. In 2014, AALC begun conducting surgical procedures at iHEAL Medical Centre in Kuala Lumpur, Malaysia.
AARO offers radiation oncology clinical, consultancy and management services and is spearheaded by Dr Daniel Yat Harn Tan. Based in Singapore, AARO will drive expansion into the growing radiotherapy and oncology segment in the overseas market, at a time where there is a shortage of modern radiotherapy treatment centres.
Despite huge potential for growth, AJJ does not appear to be on the radar of investors. Any explanations?
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