It was trading in the 9.00-10.50 range PRIOR to the announcement saying theyll make circa 20% profit growth, and NOW just prior to the report ( a cpla days away) its been traded down
What are the reasons?
The result will be good i hope and the OUTLOOK IS THE KEY
I hope everything is OK
Its been sold down a little on LOW VOLUME though
If theres a recovery youd think that NORMALISED EPS will grow stronger than this yr based on higher demand
Of course this year we've had the good fortune of a lower AUD and LOWER INTEREST RATES
But normalised operations should do even better with a global recovery
Ok the AUD is higher and the interest rates may go up a little (but HOW MUCH are interest rates really going to go up in the next year?? Theyll still be relatively LOW even if they go up a little)
on a forward PE of 13 or so and normalised growth of anywhere between 10-15% , and more benefits to come from all the CAPEX from debt to grow, youd have to think that this growth defensive healthcare leader is still cheapish at such a PE
Its in healthcare and thus 'defensive', BUT, it really is a high growth company.
So you got the best of both worlds
RHC Price at posting:
$10.81 Sentiment: LT Buy Disclosure: Held
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