I took a very large position in Estia last year around the 2-2.10 mark. I think 30% upside is a conservative estimate.
The other consideration is there have been a number of large consolidations. Allity, Japara and now McKenzie aged care have all been taken over by not for profits. This leaves very few large modern metropolitan conglomerates for NFPs to grow. They need metropolitan beds to generate profitability to subsidise their charitable mission in regional, remote and low income areas.
Estia trading way below replacement value, and it is a fundamentally well run business it is prime for takeover. In fact I should probably go and buy some more.
EHE Price at posting:
$2.00 Sentiment: Buy Disclosure: Held
