This stock has always struck me as a Ponzi scheme of sorts. The business model has essentially been to buy doctors' practices by issuing stock to the doctor partners, then wait a few years until the doctors choose to resign, then realise that they need to issue more stock to more doctor partners to ensure that the revenue keeps coming in.
It seems completely unsustainable to me - a company can't just keep issuing stock to buy intangible assets that disappear a few years later when the doctor partners bail.
Even a capital raising would only be a stopgap solution and wouldn't solve the problem of the company's flawed business model. I see a management buyout as the only logical solution.
VGH Price at posting:
35.0¢ Sentiment: None Disclosure: Not Held
