10 Comments
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Tom Grlla's avatar

Going through it slowly - already a shareholder - but really enjoying this write-up. The level of detail is really impressive - I've read up a fair bit & seen other reports, but information here I've never seen. Many thanks!

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Sempiterno Investments's avatar

Thanks Tom!! Very appreciated your comment.

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Summit Stocks's avatar

Very nice write-up. I enjoyed reading about a company I'd never heard of. Any reason why the clinics in the UK are taking much longer to break-even?

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Sempiterno Investments's avatar

Uk clinics were acquired last year. Management expects 3 years period to breakeven. They explained that the previous owner did not invest anything in the business. Therefore they need to update everything now (from real estate to software)

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Sempiterno Investments's avatar

And thank you for the support!

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Egoitz Bilbao's avatar

Hi Sempiterno,

Thank you for the thesis. Myself as well I am looking to start a position at Clinica Baviera, it is true that recently the shares gone up but I still think is fairly valued. I spoke with the IR and they told me they are thinking to start to webcast the results presentation. On top of that Eduardo and Air Eye sold a 8% stake in the business earlier this year. I do think they may start a bit promoting the business for more institutional investors. Anyway, great business as you said!!!

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Sempiterno Investments's avatar

Thank you! They're working to increase free float without diluting current shareholders and also it seems they're aware they have to improve communication as the company increases size. We will see!

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SHP's avatar

Excellent. Just hold a small position as risks are also not that low.

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Sempiterno Investments's avatar

Thanks! Which risk are you worry about?

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SHP's avatar

On the one hand, there’s the question of leadership. The CEO really does seem to be the key figure holding everything together. I'm also a bit concerned about the Chinese ownership stake. What happens if they decide to raise prices? Would customers walk away?

In theory, strong companies should have pricing power – at least once they’ve reached a certain scale.

I’m based in Austria, and I know they operate a clinic in Vienna. But many people from here travel to Turkey or drive to Slovenia or Slovakia for similar services. So why haven’t they established locations in those lower-cost regions, and instead expanded into high-cost countries like Italy, the UK, Germany, or Austria?

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