Sunday, April 2, 2023

two points I have not seen addressed rgarding Hanger

Two points that I have note seen approached on this last round of Hanger talk.

1) Although Hanger has direct access to materials at a lower cost-this point

has been discussed – but they have a large overhead of management payroll.

High dollar payroll of people who produce very little patient contact or

revenue. This is a large drain on cash flow.

2) The point that Hanger has a responsibility to their stock holders. This

sounds good, but if you think about it, the capital that Hanger generated by

selling their initial stock offering went to Hanger, but from that point on

(unless they buy and sell their own stock to keep the price in a certain

range) the person buying the stock pays the person selling their stock and

Hanger receives nothing from this transaction If they have a “responsibility

to their stock holders” the history of their stock price shows that they have

done a rather poor job. Since a bank holds a large amount of Hgr stock, then

the tail may wag the dog. I wonder how long the bank is willing to allow the

same Hgr management?

The real question is what is our leaders doing for us? I realize that this is

the classic “Rock and Hard Spot.” I’m glad all I do is take care of



Pete Abbott, C.P.


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