Fundamentals, page-12

g0af What I do know is that they have a suite of products that makes it difficult to see them totally excluded - If you take salaries and wages as the highest cost they have beds that have the sophistication it change the pressure points on the body to avoid bedsores in long term patients - all done electronically. But they also have the basics - what they do offer is a dedicated after sales service as well.

I dont see it all going to pot - Its not like they have dominant positions in any market. I expect as they grow the umbrella their contacts will increase so I think it may well help them. Then what you have to say is that in effect they in an area of the economy that has to keep increasing both private and government.

Have I done a critical analysis of the company yes about 3 weeks ago I went through all the metrics , my changing view of management , the impact of the governments ageing in place policies and the possible impact on states from government changes. all in all the metrics are better than when I got in for the first time - financially much stronger - L&R changes the dynamics as well. The problems as I see it is in educating the market and not doing cap raisings through churn agents just looking for their 5% raising fees. Management - good at operational level - maybe a bit light at board level with a recognisable name - Only Mr tanner is well known. Ageing in place will probably give them more opportunities as I see it because it looks like retirement villages will start offering some level of care - I think that is a huge opportunity because high tech there reduces staffing. They have some innovative products that can remotely feed data to a doctor and take instructions. I think they have both low tech and high tech solutions so that makes me happy. It is definitely harder given tendering but they seem to hold their own and I suspect are building their reputation at the moment. I would expect their takes of tenders to increase not decrease given their profile is improving. The one negative for me is the too high (my opinion) Dividend - They could have paid 0.5c each half and conserved the cash and I don't think it would affect the sp - The DRP process does not help - I want CGT so I want low growth in share numbers and cash retained during growth phases.

Weakness is not getting sales but I think they do okay in that area in my opinion. If you want an understanding of tenders and time horizons I would suggest you phone management. I am not up to date at that level - purely because I see that as less of a risk than them not getting their story out there.