I owned AMS years ago when it still paid a dividend, and glad I sold at the time since it seems they have gone nowhere since. The rationale was that the company could invest the cash better than shareholders, but having looked over the financials I'm underwhelmed by the fundamentals of this business. Bates continues to spend shareholder cash on more leased gamma knife systems and now PBR, but the bottom line is the investments they make continually fail to earn their cost of capital. Look at their rate of return on assets over the long term, it has persistently been 0 to 3 percent at best! This is why equity has hardly grown at all even after using large amounts of leverage. Management needs to be held accountable and start returning cash to shareholders again.
Without Bates I am not sure the company would even exist. The problem is the company has not been able to leverage what can be a very profitable model IF they get enough units installed. Also, they have bet the farm on PBR, so any math ex-div will look horrific.