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To be honest the 3rd scenario you out IMO is the only reason to...

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08/02/22

13:42

Post #: 59431551
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Originally posted by volcanochemical: ↑

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.

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To be honest the 3rd scenario you out IMO is the only reason to hold this stock. In its current form it’s pointless to be listed on a public market. The hope would be some PE fund views it as a cash generator and offers to take the business private for cash.

VTG Price at posting: 33.0¢ Sentiment: None Disclosure: Not Held
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