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.