I've been in this share for some years now. I first bought in...

I've been in this share for some years now. I first bought in after reading a D&D Tolhurst report around 2007.

I believe the company still has good prospects however it will continue to be slow going.

The PET imaging segment of the business was and still is to me the one with the most potential. Based on the reports, each site they establish was to add approx $2m EBIT if I recall correctly. However, I unsure of the business model CYC is operating under at the new Macquarie hospital and cannot recall whether their $2m EBIT was based on a different arrangement to the JV they have entered.

They describe the operation as a joint venture which I'm assuming is 50/50 with Alfred Health (AH). CYC providing the machines, AH operating the machines and staffing the practice. Businesses of this nature can be highly profitable as I'm assuming the bulk of the imaging work is carried out by para-professionals similar to radiology practices. A few of which are listed on the ASX.

I agree the company has been disappointing for many years missing every target and deadline. The fact that they haven't given shareholders further information as to how the JV operates is also extremely poor.

Having said all that I think its worth the punt and I will be sticking with it. Management appear fiscally prudent and the Macquarie Hospital operation should prove profitable provided they've stuctured the JV correctly. Further, the Technegas approval still some time off will also open up significant potential and will be icing on the cake should it come to fruition.

Good luck.