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20:29
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Originally posted by Up2Date:
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The reality is, ALC will be eventually taken over by a bigger company. Question is not if, question is when? The more deal we sign and the more geographic locations we put our steps in, the more closer we are to getting taken over by a bigger competitor. Just look at all small mobile and internet service providers in Australia for last 10 to 15 years, what happened to those? The more customer base they created, the more was the offer price and more quickly was acquired by somebody. I can see ALC management is increasing it's customer base (no of hospital beds for accurate measurements in this case). They are well aware of high operating leverage, but still somehow they managed to deal with it without dilution to share holders value and on track for successive cash flow positive quarters. This is the sign of a top quality management team. When a take over offer will be received , it will be based on customer base and shareholders will be highly rewarded as there will be no dilution. And why not, here management team got significant skin.
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Interesting post, thank you.
