strategic viewpoint on IVC, page-10

excellent discussion !!

my take-aways:

mr market, as Noon's has pointed out, has historically priced this stock on a premia, due to excellent roe, and steady top line growth ......

company is basically spending $$$, to (combination of) maintain mk share, and "hopefully" expand op margin in refurbed centers ......

I guess - this is highlighting the simple fact, that apart from "new sheets" - one doesn't need to spend a lot on upkeep ........it also highlights that a lot of fun homes are dark dingy type places ......

the company stated that op margins improved in refurbed centers ........which implies it fell in non-refurbed centers!

so - essentially - the greater capex, implies future ROE will fall a bit ......(ie where are we in the LT capex cycle of all the fun homes.....)

still watching and waiting ......

rgds
Value_Hunter