GXH - Green Cross Health (formerly PHB - Pharmacybrands)

[lissica]

So all that planning on the weekend was actually a dummy run for Pandemic level 3 and 4.

One GXH pharmacy close by had a barrier at the front with staff only allowing medication pickups. So not a lot of retailing going on.

Medical centre phone lines went crazy today- lots of telephone consults, but admin staff also run off their feet answering phones, calling patients to check where to send scripts (and prevent med centre pickups), answering queries, stopping people at the door etc. Expect that will die down over the next week as people adjust to virtual consults. Non-urgent in-person consults will be deferred, so there will be significant loss of income.

Medical centres and pharmacies will be the last businesses standing, but they will still feel pain.

I don't own GXH, but speaking as a part owner of a medical practice

[peat]

So all that planning on the weekend was actually a dummy run for Pandemic level 3 and 4.

Yeh its ridiculous to have a four stage plan, and virtually go straight to 4. Will there be a 5 or will it be 4+

[Food4Thought]

So all that planning on the weekend was actually a dummy run for Pandemic level 3 and 4.

One GXH pharmacy close by had a barrier at the front with staff only allowing medication pickups. So not a lot of retailing going on.

Medical centre phone lines went crazy today- lots of telephone consults, but admin staff also run off their feet answering phones, calling patients to check where to send scripts (and prevent med centre pickups), answering queries, stopping people at the door etc. Expect that will die down over the next week as people adjust to virtual consults. Non-urgent in-person consults will be deferred, so there will be significant loss of income.

Medical centres and pharmacies will be the last businesses standing, but they will still feel pain.

I don't own GXH, but speaking as a part owner of a medical practice

Thank you Lissica.

There was a big buy in the last few days. Found that interesting to see.

GXH could be rather well positioned for the ongoing situation.

Today's announcement
https://www.nzherald.co.nz/nz/news/a...ectid=12330222

Mentioned is about going to get a check up even if it is only a sniffle and the up and coming influx of winter symptoms etc will have a real impact on pharmacies and medical practises.

Counter trade for pharmacies will be down. Yet I wonder how this will all go. Especially if they do vitamins and remedies well on top of supplying medications etc.

Worth further analyses


Disc. Holding

[Food4Thought]

Results are out at the end if this month.

[BlackPeter]

Results are out at the end if this month.

That's what I thought as well, but they changed the plan:

http://nzx-prod-s7fsd7f98s.s3-websit...847/323469.pdf

They didn't say whether the delay is due to the volume of beans they have to count or whether it is because they can't find enough beans ... some sort of explanation would have been nice.

[Food4Thought]

That's what I thought as well, but they changed the plan:

http://nzx-prod-s7fsd7f98s.s3-websit...847/323469.pdf

They didn't say whether the delay is due to the volume of beans they have to count or whether it is because they can't find enough beans ... some sort of explanation would have been nice.

I believe, because they are a many store location and GP practise business, that, their data needs tidying up and ensuring they don't spend on overtime or hassle their bean counters.

Many people who didn't stop work have had plenty of hassles on top of their normal work to deal with.

A range of unforseen circumstances and increased volumes of product trading. My assumption is based on if other pharmacies visible trading increases are anything to go by.

This is one NZX listed company I pick as having a very good position in the current economic climate and benefiting from people getting on the health buzz etc etc.

There will be restructuring in most businesses in the near future. Reduction of costly premise leases, reduction in the budgets for middle management. Technology efficiencies. Centralizing.

The need for health care professionals and their services is one industry with increased pressure and under the microscope at the moment (I pat myself on the back for that pun)

I still wonder if they will at a point in time
merge with one of the big healthcare / retirement providers as I see there being synergies of scale there.

Speculation

[winner69]

That's what I thought as well, but they changed the plan:

http://nzx-prod-s7fsd7f98s.s3-websit...847/323469.pdf

They didn't say whether the delay is due to the volume of beans they have to count or whether it is because they can't find enough beans ... some sort of explanation would have been nice.

Many taking advantage of that waiver

Things got a bit messy with lockdown restrictions ...auditor visits etc.

But really a bit of an excuse to take things easy ....and a few more weeks to find some dirty stuff in thevaccounts that can blamed on Covid thereby hiding their past sins.

[BlackPeter]

Would expect they had a tough time over lockdown. There has been a fair bit of commentary on GP visits/revenue being well down. Would also expect pharmacy revenue to be down if lack of discretionary purchases outweighed Covid boost.

Sadly I am afraid I might have to concede that your scenario is rather likely.

On the other hand - If I look at the forward PE's of companies like AIR (actually - negative, which happens to be bad), AIA (32 and going up) or THL (going up), than it appears these days that markets tend to look through any "short term" misery and seem to equal stellar PE ratios with stellar share prices.

Given this maybe the long suffering holders of GXH can hope as well for a SP rise, even if our company is unlikely to ever reach the stratospheric PE rates of some of the other named companies which might not even survive the coming economical crisis.

[winner69]

Last years story but meaningless with what’s happening now.

Bit disappointed they didn’t conjure up a number like $2m impact of Covid instead of saying no Covid.

Main reference to future is we are resilient so sort of OK but no divie at moment

http://nzx-prod-s7fsd7f98s.s3-websit...89/325141.pdf3

[Food4Thought]

Last years story but meaningless with what’s happening now.

Bit disappointed they didn’t conjure up a number like $2m impact of Covid instead of saying no Covid.

Main reference to future is we are resilient so sort of OK but no divie at moment

http://nzx-prod-s7fsd7f98s.s3-websit...89/325141.pdf3

Happy with no dividend when it ensures a company can operate without over extending themselves.

Good considering the current climate.
Will be a reasonably busy 2nd half due to people staying indoors. People being free to roam and get back to the new normal and in he near future no doubt some covid created health importance awareness. Vitamins. Fitness. Aged care. Health is wealth.