virtus health ipo & vei comparable valuation , page-7

Good post Westwind and some great pick-ups re financials. Although I still think their disclosure re the debt covenants is a bit cute. No reference to debt repayments nor dividend lock up in the March 2013 presentation nor could I get a straight answer from management on this issue when I was "lucky" enough to speak them. Given VEI is/was very much a recap and debt restructure story, I would think the company could have been a little more upfront with this info (ie include it in their earlier investor presentations), particularly given the house broker was running with a dividend forecast!! I struggle to trust a Chairman and CEO who are willing to raise equity on the back of a broker with such nonsense forecasts. Anyhow, its probably a bit of old hat now, although I did think ASIC was cracking down on such dishonest capital raising techniques ... chalk one up for the Wolves of Phillip St.

PS, Westwind, I'm forecasting FY14F EPS of 7.4cps, although that fall in GP margin to 38.7% in 2H13 from +40% has me a little worried that I could be a little ambitious.