Regal Funds recently released an article on live wire stating their short case in RHC. Whilst they did raise some valid points, some of the article appeared factually incorrect.
In particular, point 3 seems to imply that because of new 'magical technology in analytics' and 'better oversight standards' case loads are likely to grow slowly or fall. Call me cynical, but living in a low socioeconomic region I can tell this writer that he is mistaken and rates of chronic obesity are growing at an alarming rate. This is the investment case for RHC and although this commentator will probably be correct in the short term, long term fundamentals remain sound. Since I am not smart enough to pick the bottom I have decided to buy RHC on the way down.
For those interested the link and my response is below. Yet to see if the comment will pass Live wire moderation.
I am going to have to disagree with a number of the comments below. Whilst this story had some good elements, there are also parts that are factually incorrect. Part 3 implies that better oversight will lead to falling procedures. Whilst better oversight may occur, almost all research points to a dramatic rise in procedures as chronic health cases increase at an alarming rate. One only needs to look at the data on diabetes to get some colour on the coming epidemic. Coupled with an aging population and more intervention, not less, it is obvious pressure on our hospital systems will increase in time. A valid argument could be made that the public system will have to take many of these new cases, but it is disingenuous to imply case loads will be falling or flat.
RHC Price at posting:
$53.52 Sentiment: Buy Disclosure: Held
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