Post by
JosephM1 on Nov 21, 2022 12:31pm
Extreme discounts to value, love buying $1 for .50 cents.
Calling in the impact “positive” in a research note, Desjardins Securities Gary Ho said: “We had previously highlighted a possible takeout scenario to bridge the valuation disconnect between DNTL and its peers.
Who are the potential buyers? (1) Management (owns approximately 7 per cent of shares outstanding), with the support of private equity (PE) firm L Catterton (owns 40 per cent). This would make sense given DNTL IPO’d the business at $14 per share vs the stock’s closing price on Friday (November 18) at $6. Management also bought back 73,600 shares at $10.95/share in August. (2) 123Dentist/Altima, the second largest player in the space after its merger in July (3.1-per-cent market share combined). 123Dentist is supported by key PE firms including KKR, Peloton Capital Management, Sentinel Capital Partners and Heartland Dental (the largest DSO in the US with more than 1,600 practices in 38 states). Even with a merger with DNTL (3.6 per cent), the top three would control only 67 per cent of the Canadian market — there are no competition issues, in our view. (3) Other PE players/pension funds. In early 2022, the Ontario Teachers’ Pension Plan (OTPP) sold its majority interest in Heartland to KKR. In addition, OPTrust ($25-billion-plus in net assets, administers the OPSEU Pension Plan) is a current shareholder of DNTL, with board representation. Dentistry has historically drawn significant PE interest given its recession-resistant attributes, capital-light business model, and stable growth with recurring revenue and strong cash flows.”
Comment by
BlueJay2020 on Nov 22, 2022 10:42am
Acquire a company on the open market? You do realize how the stock market actually works in general, don't you? On top of that, the top shareholders hold almost 2/3 of the voting rights. The only way to acquire the company is through them.
Comment by
preytel on Nov 22, 2022 10:45am
please don't scare the doc away. his predictions are good for business
Comment by
riskmanager on Nov 22, 2022 11:11am
hahaha what a stupido this guy. He missed the boat poor little baby. He clearly doesnt know a lot about stock market and business. 2/3 is own by Graham and L-Catterton, of course they will like to get a buy out at 6$ hahah Cant make this stuff up Just a spread of lies by Mr Doc. Keep the good work Doc
Comment by
pierrelebel on Nov 22, 2022 11:09am
anesthesiadoc wrote "not to be a downer on everyone's parade..." With all due respect, I reviewed your posts on DNTL for the last two months and they all reflect negativity on your part. As a shareholder I am confident in the future of this company. It may take a few more years to build it up or it may be sold in the $12-$16 range early next year. Time will tell.
Comment by
riskmanager on Nov 22, 2022 11:13am
dont waste your time with him, he's just whining. Put him on ignore! I would like to see him talk to himself, should be funny
Comment by
anesthesiadoc on Nov 22, 2022 1:59pm
lets revisit this in 2 weeks, my bet is it will be at $6.25 after the afterglow of this supposed buyout starts to wane. This is a great exit point for anyone smart enough to load up in the high $5's.
Comment by
preytel on Nov 22, 2022 2:25pm
i don't see it. nobody wants to be on the outside when the news comes out. timing this would be a fools game. it could be tomorrow for all we know.
Comment by
riskmanager on Nov 22, 2022 3:36pm
KKR has an history of big transactions. They paid close to 18x for 123dentist. Could be possible they try to buy DCC. Don't forget a lot of US PE are interested in this kind of business. I expect the SP to trade back in the 12-14$. IPO price
Comment by
BlueJay2020 on Nov 22, 2022 7:20pm
Well, I think this quote puts that into context: "Heartland injected $50m into 123Dentist this summer, but the Canadian DSO was "too expensive" to outright buy, CEO Pat Bauer says." Still, I agree that they are a potential buyer significantly in excess of the current SP.