OCA (15)
Why did the founder leave?
by: rainiereagle (29/M/WA) 09/01/05 09:10 pm
Msg: 37658 of 37781
The founder left the company and then set-up new ventures to compete with his old company. Not really a good sign. It's like seeing Bill Gates left MSFT.
Chfriend03, I agree with you that the legal trouble will eventually be over (in a year or so, or even faster), and this company appears to have the right infrastructure to come back at some point. But there are other fundamental problems we really need to discuss before commit any of our hard earned money to this thing.
1. Like I asked before, competition is actually catching up, OEC is one, others like Imagine Orthodontics cannot be simply ignored.
2. Any company internal problems??? Why did the founder leave? Why the insiders are selling huge shares even at $1.50 levels? Are the current management a group of dilligent ellite people that works for the maximum interests of shareholders with high level of integrity, or the other way around?
Actually, I have much much more concern on No. 2 than No. 1 - after all, the company can only be as good as its managers.
Response
by: chfriend03 09/01/05 09:53 pm
Msg: 37660 of 37781
The co-founders had some disagreements I guess. I do not know why the co-CEO was pushed out.
I am not worried about the competition. Besides, the two companies you mentioned have different concepts. OEC is a start-up and will be comparatively small. OCA has been around for almost 20 years. This business is capital intensive. It takes more than $350,000 to open a new office.
This is unlike technology --- where market share may shift quickly from one company to another. It takes years for an orthodontic practice to mature, as referral and word of mouth are important. There is no dominant "national brand", and State laws do not even allow such a brand.
Regarding "insider" selling, I think you are referring to the form 4 filing in June. These shareholders got in early this year. They are not really insiders (insiders mean directors, senior management or like).
I heard that any person or a fund that has 10% ownership of a company needs to file for form 4. They may not know more about the company than you or I. It is illegal for the company to feed any sensitive information to these big shareholders.
The main reason I post here is to communicate with other shareholders and to get more perspectives from doctors.
If you decide to invest in OCA, then you need to do your own due dilligence. I think everybody should.
by: rainiereagle (29/M/WA) 09/01/05 09:10 pm
Msg: 37658 of 37781
The founder left the company and then set-up new ventures to compete with his old company. Not really a good sign. It's like seeing Bill Gates left MSFT.
Chfriend03, I agree with you that the legal trouble will eventually be over (in a year or so, or even faster), and this company appears to have the right infrastructure to come back at some point. But there are other fundamental problems we really need to discuss before commit any of our hard earned money to this thing.
1. Like I asked before, competition is actually catching up, OEC is one, others like Imagine Orthodontics cannot be simply ignored.
2. Any company internal problems??? Why did the founder leave? Why the insiders are selling huge shares even at $1.50 levels? Are the current management a group of dilligent ellite people that works for the maximum interests of shareholders with high level of integrity, or the other way around?
Actually, I have much much more concern on No. 2 than No. 1 - after all, the company can only be as good as its managers.
Response
by: chfriend03 09/01/05 09:53 pm
Msg: 37660 of 37781
The co-founders had some disagreements I guess. I do not know why the co-CEO was pushed out.
I am not worried about the competition. Besides, the two companies you mentioned have different concepts. OEC is a start-up and will be comparatively small. OCA has been around for almost 20 years. This business is capital intensive. It takes more than $350,000 to open a new office.
This is unlike technology --- where market share may shift quickly from one company to another. It takes years for an orthodontic practice to mature, as referral and word of mouth are important. There is no dominant "national brand", and State laws do not even allow such a brand.
Regarding "insider" selling, I think you are referring to the form 4 filing in June. These shareholders got in early this year. They are not really insiders (insiders mean directors, senior management or like).
I heard that any person or a fund that has 10% ownership of a company needs to file for form 4. They may not know more about the company than you or I. It is illegal for the company to feed any sensitive information to these big shareholders.
The main reason I post here is to communicate with other shareholders and to get more perspectives from doctors.
If you decide to invest in OCA, then you need to do your own due dilligence. I think everybody should.
posted by jajabin at 4:02 PM
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