Hi , Results not flash , but if valued on a discounted cash flow basis or EV/EBITDA basis this is cheap. Interest expense will continue to reduce increasing EPS. Margins will erode unless this is counteracted by increasing margins through procedures or other higher margin options ( day surgeries etc). If one thinks about buying this as a whole business , market cap around 110 with a operating cash flow of around 22-23 then one sees that the pay back period is excellent. Patience will be required , but I really hope management are cued on as this is a real opportunity and they need to work on finding the right growth options. I own Caj, have done for a while, and radiology companies have the government regulations on their side at the moment with volume growth increasing ( more indications for GP's etc) at expense of margin reduction. VEI is not so fortunate , high fixed costs which will increase ( doctors remuneration) and government regulations on certain procedures have decreased margins. I have lightened immediately after result( only 25%) as I have invested in AZV as a growth opportunity.
VEI Price at posting:
58.5¢ Sentiment: LT Buy Disclosure: Held
