Hey Jimmy, thanks for the reply. Your comments reminded me of...

First 14 Last

Share
Profile

Follow
frankbaozhu

143 Posts.

2

20/09/17

16:34

Post #: 27348099
Share

Originally posted by Jimmy_C ↑

Hi Frank

Yes, i think the end of the mining boom and the end of CDDS were very big factors behind the zero organic growth from FY14-17, and I wouldn't be holding ONT if i thought this was a zero organic growth business into perpetuity because paying ~12x EBITDA for a zero organic growth business doesn't make sense almost regardless of what one assumes with regard to future acquisition rates - i don't think "praying for the best" is a valid investment strategy, and i'm atheist at any rate.

I will be paying closer attention than i normally would to FY18's results - i estimate the EBITDA run-rate for FY18, adjusted for FY17 acquisitions, is $12.8m - if ONT doesn't hit that number, i'd seriously revisit my reasons for holding.

I briefly looked at PSQ when it floated a few years ago, but haven't looked since. Very different businesses - PSQ is growing by opening new practices, ONT grows by acquiring.

Expand

Hey Jimmy, thanks for the reply. Your comments reminded me of DISH/ECHO years ago when everyone was saying Charles Ergen had become dumb and I just checked the stocks and they are doing fine. ONT has a long history of organic growth and there is no reason this will not continue. After years of non-growth we are finally seeing light at the end of tunnel.

ONT Price at posting: $6.47 Sentiment: Buy Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Microcap Wrap: 5 explorers with news out today

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

RCE

Recce's R327 found effective against E.coli during clinical trial