MENU

National Veterinary Care Ltd (ASX:NVL) directors are buying shares

The National Veterinary Care Ltd (ASX: NVL) directors have been buying shares lately. According to two 3Y announcements today, one director acquired 4,468 shares on 11 May 2018 on the market and one director bought 20,000 shares on the market on 11 May 2018.

Now, it’s not as though these are huge moves worth millions of dollars, but there’s usually only one reason that management buy shares: they think they’re good value.

On 11 May 2017 the share price was around $2.45, which was around a 22% drop from the all-time high at the start of the year, it has followed the Greencross Limited (ASX: GXL) share price down. In some people’s books this would represent a crash, although it has been more of a steady decline over the past five months.

I believe National Veterinary Care is one of the more exciting small cap opportunities because it is steadily acquiring other veterinary clinics to grow its business. It now numbers in the 60s and has a loose aim of adding around six new clinics each year.

The pet industry is growing as the number of pets increases with the human population and the number of pet services increases. Vets are benefiting from pet owners taking out pet insurance, which makes it more likely people will say yes to an expensive procedure.

National Vet Care has a clever pet membership program which encourages owners to bring their pets to the vet at least once per year, which is a good source of recurring revenue. It can also lead to additional revenue if the pet requires veterinary aid.

Foolish takeaway

National Vet Care is trading at around 23x FY18’s estimated earnings, which I believe is a fair price to pay considering how much the business may grow over the next two or three years. It also has a starting dividend yield of 1.2%, although I’m sure the business plans to grow the dividend over the years. I’d be happy to buy more National Vet Care shares at the current price.

Another share I’d be interested in buying shares of is this top business which is expecting profit growth of 30% in this year alone.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

Click here it's FREE!

Motley Fool contributor Tristan Harrison owns shares of Greencross Limited and NATVETCARE FPO. The Motley Fool Australia owns shares of and has recommended Greencross Limited. The Motley Fool Australia owns shares of NATVETCARE FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!