The model is sustainable now - there is incentive for the doctors to step up practice and stay loyal; if a takeover is launched now at say even 60 cps that means that the buyer spends 40million on purchase and another 107million on debt: about 150 million with EBIT of approximately 25million (which is good in the helathcare sector) In other words someone who loves economies of scale and sees the potential monopoly will defenitely buy in. Any buyer knows that the need of ophthalmology procedures is not going to reduce in the future.
VGH Price at posting:
28.0¢ Sentiment: ST Buy Disclosure: Held
