Originally Posted by
jagger
OK, I'll settle in with my small brain and defer to your brilliance at every opportunity. And I respect your unquestionable simping of the Chair.
My understanding of negative free cash flow?
In this business it's indisputable fact, what else is there to understand?
I anticipate it won't turn positive for a number of years and it will be dependent upon demand for premium aged care substantially ramping up as boomers age into higher levels of acuity whilst the funding model is resulting in wholesale closure of beds.
Long term there is value but that doesn't detract from the fact these businesses are burning cash at the moment and hiding behind mountains of non-GAAP nonsense to explain it away. Which is, to my initial point, why this business is trading as a hefty discount to NTA (which is another 'who cares' figure, mostly reliant upon a guy from CBRE stroking his chin. Said guy is also, gasp, another poor in paid employment).
It also makes zero sense for these businesses to pay dividends.
But none of that stuff matters obviously because you can point to how great Liz is for being rich or something.
For a uber rich investing genius you definitely are super engaged on the fate of a sub-billion dollar small cap.