Seriously, I now know most of the practices they bought. The Foster ones are reasonable, others are greyhound practices, Regional practices with vets retiring and a pet crematorium.
I would seriously wait to see the quartlerly and half yearly results before jumping in. At this stage NVL is simply not big enough. With such a limited scale the potential EBIT volatility will see the share price bouncing around all over the place. The Hoping and Wishing crowd pumping the price as the next Greencross only to be well covered off by the Run for Cover crowd the minute they miss a profit guideline or announce any bad news.
Remember there are a number of groups buying practices and not just the two listed ones. A $50 mil market cap at 14 times plus I would think would be covered off by at least four other groups or one or two large speciality practices in Australia none of which are listed.
It will also be interesting to see what happens the minute the practice vendors come out of Escrow.
NVL Price at posting:
$1.48 Sentiment: None Disclosure: Not Held
