RHC - Ramsay Health Care

[Kuri]

RHC went into Trading Halt today and announced a capital raising. It also stated that the new shares (I am not sure if only for institutions) will be eligible for the dividend which I have not seen before. They are looking at raising 40 million dollars from retail investors and you can buy a parcel up to $15,000. Anybody else out there looking at taking their full entitlement?

Kuri

 

[notting]

Look out below?

 

[Garpal Gumnut]

RHC take my fancy but am a bit reticent to invest after such a stellar performance.

Jump in and follow the trend, or is it toppy?

I would be interested in ASF members' comments.

A 1 year weekly chart.

gg

 

[piggybank]

Update - P&F Daily

 

[peaceofmind]

stock has overshot its fundamentals a long time ago. currently a market cap of over $8bn and a $9bn enterprise value.

Its forecast p/e is 24 on 2015, which is 100% above the ASX index. Thats a huge valuation premium. On yield- its yield of 2.4% is ~125% premium to the ASX of around 5.4% 2015.

look at the chart to see how parabolic it is.

Return approx 300% since 2010. Earnings only up about 50% since then leaving a gap of 250% for price to earnings ratio expansion - which looks very frothy at the moment. in its latest profit report profit was up by around 15%,but still not much yield which suggests a fair amount of capex to achieve this growth.

Its making acquisitions, but with a market value of $8bn, such acquisitions of small <$200m companies do little to earnings per share and nothing to dividends.

 

[piggybank]

P&F Daily Update...

 

[piggybank]

Just no stopping this stock presently....

 

[pixel]

The pullback to 50% of the Nov-Jan range seems to be completed; recent volume suggests "someone" may have been accumulating.



If today's breakout holds, this may be an opportunity to buy or top up.

 

[peter2]

@Boggo , @Porper Would either of you post a EW chart of RHC please.
The recent price move, up from 61 support has my attention but looking at the weekly/monthly it seems the chart is showing a larger corrective abc pattern that is not complete.

Would you confirm that the c wave has more to go (down to 55)?

 

[Boggo]

On the weekly it seems to have achieved the min Wave C level. I am always a bit wary when that happens too early time wise as this has, not always but often indicates that the W.C is not done with yet.

The $68 level features on both the weekly and daily charts and is close to the 50% retracement level on the daily.

Both are difficult to to put a foundation pattern on, I don't like to "force" an EW view.
Sorry I can't be anymore helpful on this Peter.

 

[peter2]

Thanks. Actually you were helpful in that you agreed with me. Your min wave C was minor support and your typical wave C lower down coincide with major support (prior lows).

It's not something I'm going to put in a medium term portfolio as the probabilities are still 50:50.

 

[Porper]

@Boggo , @Porper Would either of you post a EW chart of RHC please.
The recent price move, up from 61 support has my attention but looking at the weekly/monthly it seems the chart is showing a larger corrective abc pattern that is not complete.

Would you confirm that the c wave has more to go (down to 55)?

I agree with Boggo's chart on the daily. Down to $54.25 as a minimum.

On the weekly a complex Head & Shoulders could be forming. This offers a much deeper retracement. Longer term even $30.00 is on the cards, being the measured move out of the H&S and from an Elliott Wave perspective as well. I wouldn't be touching this personally.

 

[Triathlete]

I am expecting it to go lower based on cycles....

 

[peter2]

Thanks to @Boggo , @Porper and @Triathlete for those charts.
All analyses indicated that lower prices were probable.

Right now RHC is at a significant support level ($61). If this gives way then price is likely to get to our agreed target (~$55). The series of lower highs forms a descending triangle.
This is one I'm not keen to buy off support.

 

[peter2]

Nice job team. RHC has fallen into our projected wave C zone.

 

[notting]

The firm revealed a staggering 12 per cent fall in women having babies in its hospitals for the month of May, as patients opt for the public sector to avoid thousands of dollars in out of pocket costs.
Health care sector take note!
RHC down another 2.4% after yesterdays 7% rout.
$56.11
It blew off 54.40 yesterday to finish 57.49.
So watch what happens if it retests that low.

 

[JTLP]

The firm revealed a staggering 12 per cent fall in women having babies in its hospitals for the month of May, as patients opt for the public sector to avoid thousands of dollars in out of pocket costs.
Health care sector take note!
RHC down another 2.4% after yesterdays 7% rout.
$56.11
It blew off 54.40 yesterday to finish 57.49.
So watch what happens if it retests that low.

The babies born in public is a perfectly viable option now. With the new hospital builds and upgrades, public hospitals have private room maternity suites. You’re only really getting an extra couple of days in hospital under a private admission.

Plus, obstetrician costs are a joke, and you can’t claim any of these through anyone! Private health can’t help as it’s out of hospital. So no point going private.

 

[Triathlete]

Health care sector take note!
RHC down another 2.4% after yesterdays 7% rout.
$56.11
It blew off 54.40 yesterday to finish 57.49.
So watch what happens if it retests that low.

Would you like to give your projected view on this stock as to where you think it is headed near term.???

My own view is a lot of traders and investors were caught out so now the traders will be trying to manipulate the price to hold it up as long as possible while trying to get out of their long positions as best they can then price will collapse again...time will tell though..

 

[Knobby22]

The babies born in public is a perfectly viable option now. With the new hospital builds and upgrades, public hospitals have private room maternity suites. You’re only really getting an extra couple of days in hospital under a private admission.

Plus, obstetrician costs are a joke, and you can’t claim any of these through anyone! Private health can’t help as it’s out of hospital. So no point going private.

It was the anethatist that I was upset about. Really ripped. Understand completely why people are going public.

 

[notting]

Would you like to give your projected view on this stock as to where you think it is headed near term.???

My own view is a lot of traders and investors were caught out so now the traders will be trying to manipulate the price to hold it up as long as possible while trying to get out of their long positions as best they can then price will collapse again...time will tell though..

I have a funny story on this.

About 9 months ago I rang in to Sky News business because there was an analyst fund manager guy talking about the merits of this business. He was recommending it as a buy and had just made this comment about how when all these people are saying something is a buy then it probably isn't!

I had seen about 5 annalists fundy guys coming on in the week before him making the same recommendation about buying it! No one seemed to be saying sell it.

I cheekily pointed out to him that everyone I saw coming on the show was saying it was a buy and so according to his philosophy then shouldn't he be selling it and not recommending it as a buy. He got the joke and with a wry smile maintained the buy recommendation!! 7.30 then now 5.60.
It's holding weekly support and had what looked like a great blow off low on Thursday.
So I have no problem buying it here! Very solid business and private health care ain't going away despite the glitch at present.