I think the reports estimates are a bit pie in the sky and optimistic. Their projections are for a profit of $120M by FY20. I would be guessing something between $10-20M is more realistic.
I agree its hard to value at this stage and margins are rubbery.
Medlines conflicting interests is a nagging worry. I can only conclude that management have worked through all the possibilities and concluded they are the best partner for the Us. If SIM is a success and medline look to take over sva, that can only be good for the share price.
I would prefer to see SVA align themselves with industry leading aged care software IT companies such as icarehealth that are gaining market traction. They could integrate SIM into their much broader facility management software. With no conflict of reducing the number of diapers the facility uses, as is the worry with medline.
SVA Price at posting:
45.0¢ Sentiment: Buy Disclosure: Held
