There seems to be some strong buying happening, I wouldn't be surprised if this pressure is all the same buyer taking up stock, but this is pure speculation. What I do know is that this business appears attractively priced given their characteristics and growth opportunities. The market is currently factoring in no growth, normalised p/e of around 12, despite all of the company commentary thus far suggestion surgeon growth, new avenues and product pipeline.
Currency is absolutely a concern and the company has addressed this by stating they hedge 12-18 months of exposure, this could catch up with them down the track if the AUD moves structurally lower like many think. I do recall the company stating they would suggest renegotiated prices with suppliers should this occur, how much pricing power they would have though is unknown.
My view is that lifehealthcare is currently under researched by many institutions and broking firms. If the company can continue to grow, they will eventually attract enough interest where any valuation inefficiency is closed.
LHC Price at posting:
$2.44 Sentiment: None Disclosure: Held
