superb quarterly cash flow report, page-2

rhythmz

The only problem is the DEBT...they have a large amount of debt (normal debt and CON notes) and this means significant financing costs.

However based on my numbers, the financing costs seem well covered by the positive operating cash flow...so from that perspective yes it looks quite promising.

However, I am not going to form a firm opinion on it until I see the details behind the numbers (ie the annual report)...after which I should be able to determing if the 'revenues' reported are sustainable...or ever better with significant growth potential.

One key thing to consider is the Federal Budget change to the income thresholds for the Medicare Levy Surchage...ie increased. This will not do PHG any favours as less people on private health cover means more people using the public system rather than the private system.

I am keeping my eye on this company and look forward to ripping apart the annual report to see if there is a successful company waiting behind the atrocious shareprice.

Cdchi1