growth?, page-8

Here are some points that make this a very under the radar investment
1. Right sector ( Health care, trending up)
2. FCF positive and resulting in excellent current ratio and interest cover , unlikely to come under issues with interest payments and borrowing repayments
3. FCF will result in repayment borrowings which will add to bottom line through reduced interest costs. Thus EPS growth should increase assuming no growth of the entity as a whole
4. Good chance of upcoming dividend in 2014, which will bring yield investors on board providing current investors with a good Divi Yield
5. I read that vision was looking at using their surgeries not necessarily for ophthal surgeries only but also open it up for other procedures and had done that well. ( cant remember source now). This reduces reliance on ophthal related surgeries and diversifies the uses of its day surgery business. Reduces regulatory risk ( medicare changes on ophthal procedures ) modestly as well
6. Previous write downs this year were one offs and affect EPS but not cash flow as purely accounting exercises ( when carrying value fell below valuation from future discounted cash flows).
7. P/BV is reasonable and so is PE, trading well below its peers ( although I am not necessarily a fan of these metrics , but others do think it is important).
8. technical indicators are positive long term. on 10 year chart 13 MA crossed 200 Day MA and volume increasing .
5 year chart showing a cup and handle , currently consolidating )
9. 1 year chart showing consolidation at this stage , not a flash chart, but MACD turning up. My reading of this was consolidation and as the announcements are showing insto's and PRY are at work)
10. opportunity for acquisition and strategy changes ( day surgery use etc) which will all be a bonus and can reward shareholders handsomely.
A break of 1 will see me adding again substantially to my position as that will indicate momentum, I am currently happy with my position . I think patience will be rewarded.