Perhaps I am missing something here, and would appreciate some expanded arguments from the bears on this stock.
What I see, from a fundamental aspect is the following…
A role out of more medical super centres, from 45 in June of ’09, to 50 now with further expansion of 4 in ’10. Acquisition of 87 new GP practises. As these grow (as they mostly seem to because of rising and ageing population), the benefits will flow over to the other areas of the company.
A comparison of the feature of profitability that I particularly like is cashflow from operating activities, especially per share.
Looking over the last few years we have for the Dec half year, to compare like with like….
year….05…..06…..07….08….09
cps…..17….23.5…27….13.7..21.2
SP…..$12….$12….$6….$4…..$4
A company that provides a cashflow of > 10%, a share price a third of what it was with a similar cashflow 4 years ago, has good growth prospects, debt under control, and pays a decent dividend 100% fully franked, what am I missing?? These sort of value plays don’t seem to come along that often, in top 200 companies.
brty
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