I have been looking at NHL with interest. ========================================== Nova Health tips $4.5m to $5m profit, shares slump 10:50, Wednesday, 8 January 2003
Sydney - Wednesday - January 8: (RWE) - Nova Health Ltd shares slumped today after the company said it expected net profit before amortisation to be in the range of $4.5 million and $5 million for the year to June 2003. This equates to earnings per share of 6.2c to 6.8c. The shares fell 13c to 56c in the first hour of trade on top of yesterday's 5c fall. The company warned this year's performance would be affected by expected wage increases for nursing staff in Queensland and NSW, an escalation of insurance costs, a declining margin on prostheses and difficulties in negotiation between hospitals and some health funds. "In addition, the company is dealing with a number of one-off operational issues which, on their own, are not material but, in aggregate, impact on performance in the short-term," directors said. "It also remains to be seen what rises in insurance premiums will be secured by the nation's health funds and what proportion of that increase will be passed on to private hospital operators," they said. The company said it believed there remained scope to generate better returns going forward, including the full-year impact of the recently-acquired Queensland facilities. ==========================================
What I am wondering, has it been oversold given its low P/E and the low volume of shares that has caused the slide recently?
As well, one of the directors has purchased on 3 separate occasions over the last few days.
