Off a cliff

So MDG has now fallen roughly 50% since the final report was released a month ago. While it wasn't the most impressive report I've ever read, I certainly don't think it warranted a 50% decline. Revenues grew at 19%, operationally cash flow positive and R&D is expensed which makes the bottom line look worse than what it could.

The most obvious question though is do management really care about the SP of MDG? Cash is siphoned out of MDG every year to other companies that the directors have interests in. As long as the business is making a bit of cash they might be happy.

I don't hold, but have had MDG on my watch list for a while. I think it is in a great space that will have real tailwinds behind it. Any company that can legitimately streamline the inefficiencies and costs of healthcare will be a hot commodity in the coming years. Looking at the NZ business you can see what the final product will look like, but at much higher scale if they can crack the US and India.

I will continue to watch. It may be the seller has exhausted themselves today and completely sold out after a couple of weeks of waiting for a buyer to step up at higher prices, but unless an announcement comes out of nowhere or the next quarterly really impresses (which I can't see happening), the SP will take a while to recover.