I agree Reaper. In a bit more detail about the cash... the company appears to be swimming in cash (~$20m), due refunds of ~$17m for the terminated contract and is well and truly cash flow positive (~$20m/annum, maybe), but has stopped the dividend (~$8m/annum) and raised more cash ($2m).
One has to ask why? I guess the most pertinent comment they have given us (as you alluded to) is this:
Cash pile buys quite a few clinics, and one would consider unnecessarily large. Rollups are normally done with debt. Even if it were being done at cash neutral, using cash to expand business and pay out dividends, and raising as required, it would be much more palatable
The lack of transparency raises questions about legitimacy, strategy and just not knowing what is going to come out of the woodwork next.
Has anyone put these types questions to Geoff or Nicholas?
TTC Price at posting:
19.5¢ Sentiment: None Disclosure: Not Held
