Based on the calculations from many of my previous posts concerning comparisons between RCGI and DVA... it can be reduced to a simple factor. DVA stock is really worth 2 to 3 times RCGI stock. Current RCGI stock is at $32. DVA should be $64 to $96 per share!
While it would be great if the outcomes could be increased to 20-30 years. This is more of a dream than reality. I doubt that you can show any studies or examples that would support that this is possible in the near (5-10 years) future.
its patients very well- that is why they don't live 20 years on dialysis. I am a doctor and currently the average life expectancy of my patients is 4 years. Most of them die of infection despite precautions. The only long term solution is a kidney transplant.
Well you see that's the flaw in your reasoning. The biggest "Asset" the company has is the Patient capacity. At RCGI that capacity is valued at over $100,000 per patient, based on stock price. If you apply that same value to DVA, and subtract ALL of the debt, it's still worth 2 to 3 times RCGI. And since the 2 companies are capitlized almost the same, this means that DVA stock should be worth 2 to 3 times the price of RCGI stock.
Now explain to me why RCGI capacity is worth $100,000 to $ 125,000 per patient, while DVA is worth $ 30,000 to $40,000 per patient? You can't! Because DVA has the best management and quality around. So this divergence will not persist.