RE: RE: RE: RE: RE: RE: What's going on? The RSI got to as low at 16 today (below 30 is oversold). Listened to the conference call today. I was impressed with the frank approach the CEO and CFO took to the results and their go-forward plans, however, as they presented, there are some headwinds including:
1. Declining xray volume (which comprises approx 30% of their sales)
2. Some uncertainty as to how the talks with the Ont government will go regarding their fees once the current contract runs out in April/13. They were, however, positive in their views as to how those talks were going and cautiously optimistic that status quo re fees would remain.
They are reviewing all aspects of the operations to determine their business plan for 2013 and mentioned that they were on track with cost-saving initiatives approximating $3 to 4 million per year. They also mentioned that they have over $125 million in credit facilities to make acquisitions.
Overall, despite the 3rd qtr results (which in my opinion were not good), I left the call feeling optimistic as to the LONG RUN potential of this company and will continue to hold (but not add to) my position.
The CEO advised that they would be reviewing their dividend policies and expected to be announcing it in the near future (i.e. sometime between now and the next quarter's results). I got the feeling that it will be before year end as part of their business plan for 2013.