Vision Group is a consolidator of ophthalmology practices. Facilities sharing by these practices generates significant economies of scale. VGH is a strong player in a still fragmented and growing market suggesting sound earnings growth. Earnings will benefit from the growth in demand for ophthalmic procedures as the population ages and due to rapid advances in ophthalmic technology. The importance of eye health in combination with the rapid turnaround in most ophthalmic procedures implies high profitability. A high level of doctor ownership is an attractive characteristic of the stock. Earnings may continue to exhibit above average volatility while the business model is refined and bedded down and facility capacity is added. The relative immaturity of the company adds risk with the model not yet fully
VGH Price at posting:
59.0¢ Sentiment: LT Buy Disclosure: Held
