Why 1ST is a buy and hold long-term [$1+]

It is only once every 5 years or more that one stumbles across a micro-cap stock with a long-term investor base as stable and committed as 1ST Group's investor base.

There is very good reason for why this is the case, beyond the factors of: strong leadership, rising market share, revenue growth, high gross margin, and very strong product retention levels.

In my opinion, the single most important reason why this stock is a buy and hold long-term is this:

• There are currently ~330,000 private healthcare providers operating through ~150,000 private healthcare practices in Australia
• In 2015, only 2%-3% of all private healthcare practices in Australia were offering online bookings(!!)
• In 2019, still only 12% of all private healthcare practice in Australia are offering online bookings(!!)
• From that 12% (or ~19,000 sites), 1ST currently serves ~9,500 sites with the nearest competitors each at ~5,000 sites (HE & HotDoc)

This is absolutely mind blowing to me. The penetration level of this industry is so nascent.

50 million appointments are still booked over the phone every month, in private healthcare practices...

Healthcare is one of the last industries to make the jump online and 1ST have extraordinary tailwinds behind them that will carry their growth for years to come...

I firmly believe that 1ST will one day trade above $1 for those who have the patience to enjoy the journey along the way.There will no doubt be ups and downs along the way, but the overriding direction will be rewarding indeed.


Good luck all and enjoy.

Source: Frost and Sullivan Research Report & Discussions with Management