ONT (ASX) Ann: Media release

Originally posted by kinggee ↑

Madamanswer,
I think you are finding it easier to try and project me as a financial simpleton than to address the very real concerns I am raising. There is a difference between merely converting the capital investment into profit and investing the capital securely for a return. With the former the invested capital is not preserved it was taken as profits. Its smoke and mirrors accounting which gets by because the value of the goodwill is so open to debate as long as somehow the management can find a way to report a profit.
Yes the figures have returned to pre-CDDS but the company has invested so far at least $10M in a single practice to do this.
To answer your question regarding goodwill practice value is worth approx. 4x theEBIT based on work actually done in the year!
I am not a sophisticated share investor which obviously you (and few others on this thread) consider yourself to be. I do however have some common sense and a basic understanding of Dental Practice. If you are interested in investigating what I am raising then lets here an intelligent response. Don't just hide behind acronyms and condescending language. "Pray tell"

sincerely

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I am just wondering why you even call you self a share investor, not to mention a sophisticated one. Madamanswer is being very polite to you, but I really have no patience for some douche-bags like you. ONT is operating in a very difficult industry. If you look across the market around the world, there is never one chain dental clinic can operate at this level of profitability consistently over so many years. This is not luck. This is hard work and the vision to be the best.

Dental company is never a complicated business. You want to get organic growth, simple, hire more dentists and put on more chairs. But if things are really that simple, this industry would not be as fragmented as today. So many people have tried to group the practices at cheap valuations and sell them to the public. Most of them failed. A few made it to the stock market, but in the end invariably the business faltered. Why? Because humans are complicated. A human being, who was educated for many years, then trained for many years to be a dentist, is more complicated than average. That is why this business can be so difficult. If you still do not understand this, you should leave this company alone.

Meh, the shares are damn expensive though. I hold them, but will not buy more.