Post by
colourama on Mar 07, 2022 11:34am
Oil price effect on transport division?
Does anyone have insight to the effect of oil/gasoline prices on PHA's costs to provide their medical transport services?
Comment by
Torontojay on Mar 09, 2022 5:56am
Given that property, plant and equipment (ppe) represents only represents 9.3% of total assets I will say that it doesn't have a material impact on costs. Their original book value for vehicles under ppe, is ~ $1.4m which has now depreciated to $1m which is just 2.5% of total assets.
Comment by
colourama on Mar 09, 2022 1:29pm
Torontojay, thanks for your comments. Given that the business is operating in the relatively stable Canadian healthcare sector, in a relatively safe place (in geopolitical terms), is profitable, growing, and is not hugely affected by high commodity prices, I don't understand the consistent selling here to drop the stock 20% in a matter of days. Is everyone chasing oil and gold?
Comment by
Torontojay on Mar 09, 2022 2:34pm
I think everyone is chasing oil and gold. Im very happy to add here.