nice bounce was a good pick i reckon to bounce
Printable View
nice bounce was a good pick i reckon to bounce
Good on 70 year olds driving their racing cars as fast as they can
https://www.stuff.co.nz/sport/motors...thurst-12-hour
Good news the 40% plus shareholder in Greencross will be OK and back racing again soon I expect
Wonder what his wishes are for this shareholding are if next crash doesn't have a good ending
Dropped to 1.60 yesterday and then back up to 1.69.
I see this one as mostly more of a retail play at the moment with most of the heavy lifting being done by the pharmacy sector. Obviously the long term play is on the healthcare side in NZ of rising population and also the retiree's.
My rule is to never invest in retail hence I haven't yet got in but tempting it is. Perhaps 1.50?
I guess the pharmacies alone are in my view quite inefficient, low (no?) growth and under heavy attack from supermarkets. The stock becomes more interesting if they manage to implement their vision of an integrated health care company, but it looks like the markets don't really believe anymore into their growth strategy. Show us the money - and the SP will take care of itself.
Not sure what it would be worth just based on the old pharmacy brands. One dollar would bring the long term PE (8 yrs) down to 10 ... and if we just take the last 5 years, than it would be even $1.20. Why pay more?
Chemist warehouse continue to apply the pressure
https://www.stuff.co.nz/business/105...rmacy-industry
Must be hard for the smaller pharmacy’s that they still have to pay the govt $5 for every script even if they don’t charge the consumer
They don't have to pay the government ... the article used a particularly strange way to express that the government subsidizes pharmacies in a big way.
The government calculate the retail cost of the medicine. This calculated retail price is high enough to make sure that even the most inefficient and worst run pharmacy in the country still will make a handsome profit.
Given that pharmacies are allowed to charge $5 prescription fee is the government than deducting $5 of this fictive retail price - and pay the reminder to the pharmacy for dispensing the medication.
Any pharmacy working a bit more efficient that the worst run pharmacy in the country makes a steal - and the discounters are prepared to return some of this steal back to the consumer.
Coming from overseas and with the benefit of knowing some different health systems I found NZ Pharmacies always expensive and highly inefficient. Good to see now some competition coming in.
poor old gxh investors hanging in there hoping for a comeback ... unichem maxx not quite the miracle cure then ...
According to the latest FS, the company makes 8.4% of profit on sales in the pharmacy segment (bottom line). Not impressive at all, and an introduction of a competitor that sells so much cheaper will lead that down.
With the current govt in charge and healthcare being viewed as a public good in NZ, its hard to see this being a home run. Even if it does well, regulation will get it eventually (see pay equity deal).
6% drop in the last 5 days ... sinking ship?
CW are taking larger and larger bites out of GXH's pharmacy business.
GXH need to focus less on operating standalone pharmacy's and more on the centres performance... Medical is going well.
Not a holder
Yikes! This is an awful result. That operating cash flow could be bringing in warning bells to go from 17m to 8.7m in just one year. It makes you wonder because pharmacy is so big and medical/community health really doesn't contribute that much right now
I'm not sure what they can do on the pharmacy side given the fact Chemist Warehouse want to expand like crazy. I went into the one in St.Lukes and the price differences are night at day on most things, so driving there to pick up a few things is actually worth it. Either way, GXH loses if they keep dropping their margins or keep margins the same imo because the market is so small.
Disc: Not a holder
Relative who's worked in pharmacies for years says losing custom to CW, despite being a 20 minute drive away
Hopefully a good sign.
http://nzx-prod-s7fsd7f98s.s3-websit...850/291821.pdf
Wow - SP at $1.14 more than 60% down compared to its peak value of $2.90 in May 2016 - and basically a textbook downwards slope since then.
Attachment 10259
Average (backward) PE is now 11.3 - still not really cheap, particularly considering that we might move into PE contraction territory.
On the other hand - for the right competitor they might move into takeover territory. At what time are they cheap enough for a clued up overseas competitor to just buy the lot for a song and show the NZ healthcare system how efficient pharmacies could be operated?
Assuming they won't run NZ largest pharmacy chain (with some other health ad - ons) into the ground - where is the bottom PE? At 10? At 5? And will these margins continue to shrink given that any newcomer will be cheaper and better. Hard not to.