1300 Smiles (ONT), a serial over performer in the small cap medical (dental) services sector, demonstrates in no uncertain terms what can be achieved by a management team and board operating a medical services business that has the interests of shareholders front of mind.
Achieving a six fold increase in its stock price since 2005, tripling of earnings per share and quadrupling of dividends, makes Vision Eye Institute's performance over the same period look very sick.
A simple reading of the ONT 2012 Managing Director's report reveals the focused 'owner' minded thinking of its leadership, in stark contrast to the scant detail and commentary included in the 2012 VEI annual report; ONT is obsessed with avoiding shareholder dilution of equity and achieving high returns on shareholders' funds.
The ONT Board has only three members, only one of which is an executive and dentist; VEI has eight directors, four of which are executives, three of which are doctor partners.
At its core, ONT is fundamentally not at the mercy of its doctor group given the greater supply of dentists in its sector.
Is this the key difference?
VEI Price at posting:
43.2¢ Sentiment: None Disclosure: Not Held
