|1ST Dental Labs
||EPS - Basic
||Market Cap (m)
|Health Care Equipment & Services
Real-Time news about 1ST Dental Labs (London Stock Exchange): 0 recent articles
|bbbb: but the share price is not ahead of that, or maybe it's further ahead
and saying there may have been previous overhope.|
|lady s: 1st Dental Labs:
Share Price 15p
Shares in issue 42,017,444m
Market Capitalisation £6.303m
Pretax Profit Forecasts year ending 30/11/06 £300,000, EPS of 0.7p and P/E of 21
Pretax Profit Forecasts year ending 30/11/07 £700,000, EPS of 1.7p and P/E of 9
The company is now firmly in recovery mode after a slight hiccup in the first half of the year. However, the shares are still cheap, trading at around nine times 2007 forecast earnings a figure that should probably be double that. Most of its peers in the healthcare sector are typically trading on multiples in the mid teens or even early twenty's in some cases.
Despite the issues surrounding the integration of Benchmark and legislation changes in Primary Care Trusts the sales force have more than compensated for any loss in business during H2 of 2006. In fact the phenomenal success of the sales team could even prompt the house broker, Corporate Synergy, to raise this years forecast earnings.
This share is a strong buy.|
|bbbb: sf: the share price chart illustrates another fantasy aspect of possibly flawed
or otherwise unsuccessfully executed strategy. if liquidity had allowed it might have been theoretically possible to make more money from trading the consensus as to whether they would succeed or not than from the underlying businesses.
when excess money seeking a return is pumped into businesses trying to reorganise an industry with the objective of extracting greater profit overall than hithertofore, the result may not always be as hoped. and along the way, the
management cycle can generate disappointment as well as pain and disruption, not necessarily all for the greatest good.|
|muffinhead: Net tangible asset value per share 4p of current share price. Sorry guys but if profits remain negative, same or worse, this share may bottom at about 8p. It could get there pretty pronto as liquidity is small.
DLA figures show a trend. The DLA has suggested that the government looks at changed prescribing patterns of dentists post new contract.
Another company suggestion...change the name from 1st Dental Lab. Even Heiniken tag line reads "probably the best beer in the world". Drop the "1st" as it gives the wrong impression.
I rang my local 1st dental lab (Aesthetic Dental Lab, Harrogate) to get bank details 2wks ago so I could settle my lab account by BACS. Answerphone message twice over 30min period where "on other line" message given. When my nurse phoned back 1 week latter, receptionist said she would ring back with details,,, never did. My nurse rang back other day and finally got the details.This is supposed to be the head office.
Next 2 weeks will be interesting but wider problems of lab industry could drag on for much much longer.|
|jaguarboy: The recent falls in the share price can almost be wholly attributed to the impact that the NHS reforms are having on UK dental laboratories. Under the new 3 tier banding system, patients that require treatment will fall in to band 3 which costs a flat fee of £189. According to the Dental Laboratory Association there has been growing concern amongst a number of laboratories that business has significantly declined since the introduction of these reforms in April. It is feared some dentists, in an effort to boost income, are cutting the costs of treatment by offering cheaper alternatives or sourcing lower priced suppliers.
I contacted the '1st Dental Laboratories' management team last week to voice these concerns. However to my surprise and relief it was confirmed that these NHS reforms have not affected any of 1st Dentals 16 nationwide laboratories. The interims on the 29th will reveal the truth but I do feel investors can take some comfort in the following:
1st Dental Labs pro-actively responded well in advance to the NHS reforms in April by introducing the sales department during last year to combat a possible fall in revenue.
As the largest chain of dental labs in the UK, FDT is well placed to benefit from economies of scale. Through the centralist ion of overhead costs it has been able to increase its market share by offering cheaper treatment than the smaller niche laboratories.
The closure of the Newbury branch may result in some exceptional items appearing in August's interims but does in fact mean all other parts of the business are now profitable.
The management has halted the 'buy and build' strategy of acquisitions since final year results to concentrate on improving the existing businesses, mainly Benchmark.
The company has seen millions wiped off its market capital in the last few weeks but the actual volume of shares traded is pitiful in comparison. It is purely bad sentiment in the industry that is driving these lower.
Finally if the investors chronicle article in May thought these shares were good value then they must be an outright 'buy' recommendation at these levels!
Good luck to all the shareholders|
|jaguarboy: Yes Sir C the company deserves some positive press coverage at last. I can not understand that given the positive forecasts for future earnings that the share price is still trading below the NAV of the company. The share has to be a bargain at these levels.|
|pugugly: £11K (approx max investment each) Not very enthuiastic (imo & dyor) I remember Ringprop directors buying shares not so long ago - That did not do much to help the share price in the long term !!!!!!!!|
|sir christopher: Traditionally FDT has been overly pessimistic and too quick to issue profit warnings. I believe that the results will be much better than the doom mongers predict. One of the biggest pitfalls for investors is a tendency to follow the herd, seeking safety in numbers doing the same as the crowd. The ability to stay dispassionate and not follow the herd is therefore crucial to both avoiding mistakes and spotting opportunities I also believe the forecast accuracy can be improved by shrinking toward the mean. Insufficient appreciation of this statistical principle may partly explain the success of contrarian investment strategies, in particular why stocks with the most optimistic earnings forecasts underperform those with the most pessimistic forecasts.
Anyway many thanks to the doom mongering herd for lowering the share price as I have just topped up my holding with another 100,000 shares and I have no hesitation in recommending FDT as a short to medium investment opportunity.|
|sir christopher: Yes Jaguar boy I agree. I was pleased with the last Intrerim Results showing profits increased to £412,000 from £28,000 the previous year. I would imagine Andrew Garner is disappointed that the share price is languishing at a mere 30p. He also needs to be cautious as at this price FDT is an attractive proposition to larger players such as Dentsply (XRAY) and we could see some interesting developments this year. I have a large holding and confident that either way I will get double figure return on my investment.|
|jaguarboy: After the RNS on the 18th Nov 05 advising the FY results will be below expectations, I would imagine there are a number of investors who will now hold off investing until the FY results are released. However, we have seen before that the chairman Andrew Garner does have a tendancy to be overly cautious and the results could surprise a few people. We also know this stock is not very liquid and the share price can be moved easily on relativley light volume. A £50k buy a couple of months ago moved the share price up about 4p! I am in this stock for the long term. Good Luck.|
1ST Dental Laboratories share price data is direct from the London Stock Exchange