Long Term Bullish - Short Term Not, page-7

Interesting discussion, however I do not expect a major drop in the VHT price. The reasons for this are as follows:-

1) Given the acquisition, the market will look at the overall result ( not solely the old VHT component), however it will be interested to get a view on how the integration has gone. I do not expect problems, however we will have to see / look at total revenue, market %. So whilst, this was a slow period for the old VHT , it may not be for the combined entity!

2) The FDA changes could be announced at any time, if they require mandatory outcomes,VHT is well placed to benefit from them and it could result in strong price appreciation.

3) Given the acquired business already had a far larger footprint in the USA, I believe that management would want to deliver a combined product at the same time looking to increase margins. Whilst this does not deliver immediate financial outcomes, its direction will be important - I note in one of the slide presentation, management had indicated that this was already starting to occur.

4) profile of VHT haslifted - Morgan's have them on the High Conviction List, Under The Radar has them as a buy. Also receive coverage from the Motley fool.
Will create interest on release of results.


5) index rebalances - not sure if index rebalances impact however the increased entity size may result in some fund managers look to acquire stock.

However, given the market, I could always be wrong and if they dropped, I would buy more as I like VHT on a long term basis.

best of luck
The investor2