HSP - Healthscope Limited

[Sean K]

Well, sorry again guys for posting about another blue chip that actually makes money.

HSP has been rumoured to be a takeover target after a bit of a downdgrade in earning forecast and issues with bedding down an acquisition sent it's shares tumbling. I owned them before that.

Been following it very closely recently as I see it about to break above what has become a brick wall for the sp: $5.00. Just can't seem to crack it. However, I can see that it's biulding some momentum and all it's going to take is a good report (which by the price action I think is coming) and this will be off and running back to $6.00 and beyond. Even if a takeover doesn't come! A break under $4.75 would be a signal to sell.

 

[Sean K]

ooo,oooo, it might be going to close over $5.00!!! yeah!! Hold on HSP! I'll be topping up if it holds above over next couple of days.

Now, if it closes above, and immediately goes down on Monday, I am going to look very silly.

Hopefully XJO have a good night, to assist.

 

[Sean K]

XJO was OK, so the stock will be left to run it's own course. Finished at $5.02, just above resistance, and it's highest point in 9 months after crashing in Jan. Looking forward to some confirmation that it's cleared $5.00 before topping up.

My only worry is that the XAO looks toppy to me, so there's a chance for a short pullback soon, which will effect this of course...

 

[Sean K]

At $5.05. Tested $5.00 ish intraday and bounced off $4.96. Good sign. And $5.00 becomes resistance? Maybe. Another day to confirm. Need an OK night on the XJO again, then I'd be more comfy putting more on it.

 

[dhukka]

Pardon me Kennas for also talking about this blue chip that makes money and committing another sin by looking at fundamentals. Currently trading at about a 15% PE discount to the sector. Good growth profile 2 years out FY08 PE/growth of 0.7 makes it look cheap on a 2 year basis, any earnings positive annoouncements would make it look even cheaper. Any other large cap healthcare stocks look this attractive at the moment?

Looks as though it's pushed passed the resistance at $5.00, closed at $5.09 today.

 

[Sean K]

Pardon me Kennas for also talking about this blue chip that makes money and committing another sin by looking at fundamentals. Currently trading at about a 15% PE discount to the sector. Good growth profile 2 years out FY08 PE/growth of 0.7 makes it look cheap on a 2 year basis, any earnings positive annoouncements would make it look even cheaper. Any other large cap healthcare stocks look this attractive at the moment?

Looks as though it's pushed passed the resistance at $5.00, closed at $5.09 today.

Yeah great finish. I'm going to pick some more up I think. Although might wait for the RBA decision so there's a bit more certainty on where things are going short term.

I held DVC for a while and recently sold. Can't see a higher bid coming.

I've heard some good things about Vision (VSL) but haven't researched it.

HSP is in Lonsdale Securites 'model portfolio' of just 8 stocks.

 

[Sean K]

HSP confirmed above $5.00 resistance and is looking good. Apart from the likelyhood of a pull back on the overall market this looks a great trade atm. Even so, I'm topping up just a little, as healthcare should do ok in a slide anyway.

Long term 'investment' for me.

 

[Sean K]

Hitting $5.20 in early trade.

 

[Sean K]

Has behaved rather nicely for me. Good HSP. God boy!

$5.00 becomes pretty good support now.

Now, hopefully XJO doesn't crash tonight and wipe away all that good work...

 

[Sean K]

Very strange moves on HSP yesterday which scared the hell out of me. At one stage dropped way back to $5.00 for a couple of trades and then shot back up again. What the?? Still holding on to the breakout above $5.00 and looking ok. Analysts aren't really rating it that much atm with valuations about $5.00 - $5.50. Nothing spectacular. Just a long term solid play now imo. I'm hoping for private equity to swoop on this soon.

 

[Sean K]

I don't mind talking to myself on this one because, hey, I'm making money! he he.

Apart from having an extremely unusual chart, HSP is approaching an old resistance level at $5.50 after what I thought was an important break through $5.00.

I reakon HSP is just cruising at the moment and is going to keep chugging along onwards and upwards in the long term. Any weakeness will be another buying opportunity to me.

Plus, private equity seem to be buying anything at the moment and with an offer out there for DCA, this could be next off the rank.

Go HSP!

 

[CanOz]

Lots of debt. But i see Perpetual recently took a 5% stake in them (Oct).

Cheers,

 

[Sean K]

Smashed through resistance at $5.50 yesterday and finished at $5.60 , inexplicably. My only regret thus far was not buying more on the break through $5.00 on CFDs....

 

[tybutler]

Kennas,

I have held these for a while and have made a nice gain. I off-loaded some DVC today and still want to keep those funds in the healthcare sector (long-term hold - aging pop. etc..). $5.50 seems reasonable to me for the long term, but what's your analysis short term? I have watched this one trend up for a while. Sustainable?

Thanks for your charts.

Ty.

 

[Sean K]

Kennas,

I have held these for a while and have made a nice gain. I off-loaded some DVC today and still want to keep those funds in the healthcare sector (long-term hold - aging pop. etc..). $5.50 seems reasonable to me for the long term, but what's your analysis short term? I have watched this one trend up for a while. Sustainable?

Thanks for your charts.

Ty.

Will need to consolidate a bit soon. Maybe it will around $5.50. Long term I a believer for the same reasons as you.

 

[Sultan of Swing]

Missed this thread until now. I bought in to HSP in Feb after it took a dive and held out while it went lower. Glad I did! The last 2 - 3 months have been a nice ride.

Again, I think I'll hang in for the long haul.

 

[Sean K]

A sea of red for me and my watch list save a couple of stocks, HSP being one of them. Up 2.5% ish, which is noice.

Sitting at $5.50, having climbed 50c from the beakout at $5.00 when I started posting on it. 10% gain for a blue chip in a month or so will do me. Just wish I'd CFDd this instead of buying straight stock. Oh well, I'm still waiting for a better correction in the general market. Maybe then.

Some resistance for this at $5.60 ish, so hopefully we have a good day or two on the XJO for a push through and back on to it's previous trajectory...

 

[Gurgler]

Kennas

Been looking at this one for a while.

From your chart can you explain the current significance (if any) of the blue line.

After the events of Jan 06, what drew your interest to this stock?

 

[Sean K]

Kennas

Been looking at this one for a while.

From your chart can you explain the current significance (if any) of the blue line.

After the events of Jan 06, what drew your interest to this stock?

I've owned this since mid 05, held after the crash, and bought back in after I was sure it was recovering. The blue line is the up trend support line pre crash. It was running pretty hard then though. Had to retrace somewhat, but not how much it did. Was way oversold.

 

[Sean K]

Ann released. Just bought out it's major competitor in Singapore. This is creating a great springboard into Asia. Good darts HSP. Perhaps this is why it's just broken through previous resistance at $5.50, now trading at $5.69.