Peter Hodson
TLC Laser Eye Centres
TLC-T
DON'T BUY
Aug 28, 2006
Doing very poorly against their US competitor LCA Vision (LCAV-Q). Also had problems with their subsidiary Occulogix when their clinical trial failed. Starting to get beaten up enough to maybe start paying attention to it.
Also owns a US company LCA Vision (LCAV-Q) and have been selling his TLC shares to buy LCA. Feels LCA is a better run company on the laser vision procedures.
Expensive. Model price is $13.08, so there is a discount and value. Trades at a high multiple to book. If they ever stumble it would sink like a stone.
His problem with the stock is that there is only one estimate, so the information given may not be that good. The model price shows as $9.90, a 65% positive differential. Be cautious
May have reached its bottom in August. Check the volume from that point. In order to have a bottom, you want 3 X the average volume, a rally and then a correction. If it does not make a new low, that is your signal to buy.
This is on his Stock Watch list. Balance sheet is pretty dirty with a lot of debt. Company is trying to make major changes, but at this point the risk is far too great for him. Likes the field, which is a growing one.
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