PME - Defying Gravity
Today we discuss one of my favourite stocks in Pro Medicus (ASX:PME) and how it has managed to defy gravity in terms of price to know be considered the most expensive stock on the ASX.
For those unaware, PME was started 40 years ago by current CEO Dr Sam Hubert and Anthony Hall in 1983 to basically sell software to help medical professionals (particularly radiologists) manage their practices. But the business was really transformed by the 2009 acquisition of a US radiology software firm called Visage for $US3.5 million.At the time the business was worth just $115 million. Today it has a market cap of $15.6 Billion. Its headquarters are still a very humble office space in Swan Street Richmond (ps… I love that!)
With Visage they got the technology platform, a technical team in Germany and most importantly a foot in the door in America where big hospitals and healthcare groups are much easier to sell to than Australian equivalents. In fact the North America segment currently makes about ~87% of all revenues for the business.
