There are a few further positives to dissect for OSP.1. They are...

There are a few further positives to dissect for OSP.

1. They are on about 2.5m AUD p.a revenue. EV/Revenue is around 2 LOL.

2. OSP profit margin after the supply contract renegotiations is 300% maybe 300% plus

3. A similar company to compare to is Pro Medicus.
High margin low revenue business with plenty of growth trajectory. But the Pro Medicus EV/Revenue is a substantial 100.

4. I would argue there is a lot more legs of growth for OSP just on the basis it’s 5m market cap instead of 8000m Pro Medicus ATH. Also on the argument of saturation. Dan Murphy’s and hotels is an example. Once COVID opens, hotel business go up, Dan Murphy business down. You can’t have both going up at the same time indefinitely because the population is only SO LARGE unless there is large scale inflation artificially imposed or not.

5. When you have 90% of the market already, growth becomes harder LOL. At least from a % or 5x growth point of view. Growth is bigger and easier from 1 YouTube view to 100 than it is from 10 Billion to 100 Billion in % terms.

6. However the market can only price the current. Esp in times of low confidence and rising interest rates. At these times, the market only looks at the negative. Ie impending cap raise coming up. Huge wage bill. I argue now is the best time to just focus on one thing. What is the minimum price of a medical equipment company with over 10 years of product and strategic and business development even though current sales and costs do not reflect its future potential.

7. Final question: How hard is it to reduce this wage bill problem? I argue VERY EASY