Ramsay Health Care - RHC

[Joshuatree]

Not a nice situ for u herbert . Im waiting to hopefully buy so cant really offer you much .Averaging down is one option .But downtrend hasn't finished yet by the looks. You've bought high and want to sell low, wrong way around. How long is your time frame on this stock.

Im not holding atp but Im watching for a possible buy. Out of favour and down graded by credit suisse ?etc.. Their return on capital invested in hosps in france and Gt britain are low, have failed. Selling up and a return of capital to shareholders or more hosps in aus, asia etc a strong possibility.
Questions and doubts about PH affordability and PH patients admitting themselves to Public hospitals. The Govt will have to keep incentivising the Private health sector as the Public system like here and elsewhere is creaking and a bottomless hole $ wise. On top of that the accelerating ageing pop ensures private health have a good future imo.

Appreciate your reply h2so4 thanks.

[h2so4]

Is RHC now a "sell"? Already down $10.00 on buy price (broker recommendation) maybe its time to cut losses before it tanks any further.

Maybe. You don’t have to make it back the same way.

[percy]

We live in interesting times.?
Macquarie's research 3/5/2018 they rated RHC an Outperform with a target price of $74.50.

[herbert240]

Thanks for your input JT. A bit tricky really...its part of wifes inherited portfolio. When she took it over her financial adviser (whom she can't see past!) convinced her into putting some funds into the Australian market. Three of the five she bought have done ok but RHC and CBA haven't. I have tried to stay on the sidelines but it has been rather difficult to watch value disappearing at a rapid rate! (Even she is starting to wonder I think) And as you say RHC 's decline hasn't steadied yet.

[percy]

Thanks for your input JT. A bit tricky really...its part of wifes inherited portfolio. When she took it over her financial adviser (whom she can't see past!) convinced her into putting some funds into the Australian market. Three of the five she bought have done ok but RHC and CBA haven't. I have tried to stay on the sidelines but it has been rather difficult to watch value disappearing at a rapid rate! (Even she is starting to wonder I think) And as you say RHC 's decline hasn't steadied yet.

The Australian Govt's Royal Commission is affecting all banks.
Banks get set backs,however, they reinvent themselves and go onto greater heights.
I would be happy to hold RHC and CBA for the long term.

[Joshuatree]

Craigs have a t/p of $68.61 with a hold rating fwiw A bit of research below. Credit suisse target of $56.50 but havnt verified this, or their sentiment.
"Increased public hospital funding
A new public hospital agreement is forecast to deliver more than $30bn of additional funding between FY21 and FY25 (up 30% over the previous 5 years). There has been some criticism of public hospitals targeting privately insured patients to improve their finances. Therefore, increased public hospital funding could lead to more privately insured episodes being undertaken in private hospitals, which could benefit RHC and HSO. However, public hospitals have argued that they do not actively pursue private patients, so there may not be much benefit to the private hospitals from an increase in public hospital funding."

$56.49 and dropping atp. have just bought a starter parcel.

[herbert240]

Thanks also h2s04 and Percy

[babymonster]

I have averaged down with small parcels. Still sitting with a 10% paper lost but not too worried

[Joshuatree]

Am 8% up in re a week on this high conviction investment grade stock atpit.

[ratkin]

NHS demand management strategies are having a significant negativeimpact on volumes despite the significant and increasing number of people in the UK awaiting treatment.

In addition to the significant downturn in NHS volumes in Ramsay’s UK business, Ramsay has alsoexperienced weaker growth rates in procedural work and inpatient admissions in its Australian operations inrecent months as well as delays in the rollout of the Ramsay Pharmacy franchise network.

EPS growth is now expected to be approximately 7% compared to theguidance of 8% to 10% previously provided

Might end the recent resurgence in price