Hi All its good to look at both the bull and bear scenarios for any stock to challenge our thinking. My view is that this business has to go through a three step process from here:
1. get the current portfolio profitable which may require exit of some clinics 2. expand its footprint by acquiring profitable and established clinics (not build new ones and waiting 3yrs for them to become profitable) 3. be ready to sell the lot to an experienced player or trim down the overhead costs and become an high dividend stock
covid is a problem for this kind of business which makes the timetable to move through these three steps more critical. they need to have a relatively clean FY23 or investors will dump and move on in my opinion. if they move slow and burn the cash surplus on corporate overheads then I hear some big shareholders will exit.
VTG Price at posting:
34.0¢ Sentiment: Hold Disclosure: Held
