Oceania Healthcare is obviously top class along with some others. Even in NZ though there some which have issues.
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Oceania Healthcare is obviously top class along with some others. Even in NZ though there some which have issues.
Relax guys, we're nearly half way through 2021 and the share price is still below where it started the year. IF we stay Covid free for the vast majority of FY22 and IF the housing market stays fairly strong despite the draconian tax measures of the Labour Govt then we might see it gradually head up over the next year or so towards the brokers average 12 month target price of $1.68.
I think Earl has so much work to do fixing MET's business it'll keep him busy for many years.
Reality check, sorry to be dogmatic but this is really concerning and I fear its never going to end. Nurses striking today wanting a MASSIVE 17% pay increase, (for goodness sake) hard on the back of a multi year accord reached several years ago whereby they have enjoyed several years of wage increases well and truly above the rate of inflation. If they're successful next will come the pay relativity claims from all levels of caregivers and after that cleaners and administration staff.
https://peoplesdispatch.org/2021/06/...n-new-zealand/ Basically they want danger money for working with the risk of Covid and its hard to come up with a credible reason why they shouldn't get it, however there are serious implications for high late stage care providers if annual wage cost inflation is going to accelerate from ~ 8% per annum to anything like 17% per annum and Govt funding increase stays in the 2-3% per annum range.
Might be interesting to question the team at the annual meeting about where this increasing imbalance between cost and funding for staff is at right now and what their plans are to mitigate this pressure going forward.
Wages Push Inflation is a recognised economic principle. When wages go up, businesses have to charge more for their goods and services. If nurses receive more than the inflation rate as an increase, it creates more inflationary pressures in the economy. I can see rampant inflation, with the only result is higher interest rates.
There are little efficiencies to be gained unlike every other industry. Maybe more workers per person will be needed when second-tier "cures" come onto the market which extend things for only a few months but do not deliver gains in function or health.
A real worry, good example, this boat was $249,000 in February, now $279,000 https://www.profileboats.com/models/...e-boats-800hw/ 12% cost increase in just 4 months !
My understanding is they're having to pay a lot more for skilled welders and boat builders, higher aluminum sheet prices and much higher freight costs. Trouble is OCA can't pass on price increases like this to its customers, whereas the boat manufacturers have rampant demand AND can and are passing on the full cost increase and probably a bit more for good measure.
One of my clients pushed through a substantial price increase last week. We have already started work on the next one which will come within the next 6 months. Our increase with one merchant was delayed a week due to a backlog of other supplier price increases. Inflation is coming.