Recent email from director, page-4

From Peter's answers, I can almost guess what the questions were:

Have you overpaid for acquisitions given the current market reaction?
1.We do not believe we overpaid for any assets but there is no doubt that with the government acting to suppress demand in the health system, this is impacting the earnings of the group.

My view: At the time no but yes in hindsight. Could they have paid less? At the time no but now yes. This means in the short term the cost of future acquisitions would be aligned to the market condition.

Do you have enough cashflow/liquidity/cash to fund everything you've promised?
2.The company has adequate liquidity capacity both through cash and undrawn facilities to fund both the Enlitic investment and normal operating requirements.

My view: CAJ's primary source of cashflow is the government through bulk billing. The payment term is 48 hours. The $100m secured loan from nab has not been fully drawn down yet.

Will you scale back the growth strategy due to reduced cashflow/cash/revene/profit?
3.The purchase of additional equipment and practises are assessed on an individual business case basis rather than available cash. Our focus in the investment decision is on the return expected from an asset.

My view: If I see a fire sale of a quality asset and I don't have enough money, what do I do? I borrow. Lack of money is not a problem, letting a quality asset get away is a strategic loss.

What is your view of the share price? Will it recover? Will it go up? Will it tank more? What influences do you see impacting the share price?
4.Future share price is very much a function of share market activities and we cannot predict outcome in this area.

My view: I think a better question would focus more on the actions taken by the company and not something the company cannot control, e.g.

- Does the company have any intention to initiate an on market buy-back? If yes then SP will move up.
- Is the dividend likely to be down or cut in the half year results? If yes then SP will move down.

Skip as not sure what the question was in this case
5.The appointment of additional directors is in accordance with ASX corporate governance requirements.

Are your radiologists concerned that the introduction of deep learning will one day replace their jobs? Do you have buy-in from them?
6.The introduction of Enlitic technology is seen as part of the offering and not a substitute for other components of patient care – it is an aid in providing best care first time.

My view: I am just so glad that CAJ got to Enlitic first and not a competitor.