and NFPs have very deep pockets with money from all sorts of...

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09/06/21

16:17

Post #: 53746653
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Originally posted by romans: ↑

A bit of an ignorant comment, many NFP Aged Care businesses have blown up huge amounts of capital in the sector or are extremely inefficient. I am sure many people on here have a reasonable degree of financial knowledge around the industry. Certainly Di Pilla and Sudholtz would have a better view than .01% of people. Calvary may have a whole lot of reasons for the transaction which are not principally financially as well.

Agree with JPGuru that you do not value based on NPAT but EBITDA not a complete solutions too. Looking at how free cash flow is reallocated is pretty important as well in looking at the businesses prospects over time. I think Japara still has a fair bit of runway for new sites over time albeit with a slightly different development model. The question is can the business adapt or is it better for the likes of Di Pilla and Sudholtz to exit and establish a new vehicle for the blended ILU and aged care model in the metro areas. There is still a fair bit of runway in some of the regional areas as well. Staffing issues will be a large concern at the moment.

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and NFPs have very deep pockets with money from all sorts of opaque sources, and their accountability mechanisms are poor. so they can make poor investments without recourse. Just look at Prescare.

JHC Price at posting: $1.18 Sentiment: Hold Disclosure: Held
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0 Great analysis

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