I keep telling myself I like this stock, but I got in close to the listing and initial purchase was over $2, and then again when they did their CR at the $1.30. The yield on this stock is super, and I have this one on a dividend reinvestment plan. I find some consolation in thinking that at least I'm getting my new shares on the cheap! Talking private hospitals, there does seem to be that volatility at the moment, and with health insurance (NIB) in the news and their battles with the hospitals - I got the feeling that hospitals will come out on top. I think my favourite line (from someone) went along the lines of: without private hospitals, private health insurers don't have a business. If they get a win with costs in that box, things may well start to line up. Healthscope, in particular, who knows! But at the end of the day, the asset is good - what's worst case scenario? Government buys the hospital to make it public? Or, government throws funds at private hospitals because it is cheaper for them if someone else is paying (think private vs public schools).
But then, you have HMC in a drive to push and push and push their assets under management higher (I really want to buy into HMC eventually, but 5 weeks in Europe in September has been busy taking my funds this year!) - which, for HMC is a good thing - but, it probably means their gearing will stay higher than you'd want. In that case, until rates fall, there will always be that gearing pressure. My favourite REIT is ARF - low gearing, boring stock, does what it says it will do and increases dividend every year. My hope is as HCW matures and the healthcare sector sorts itself out, that HCW will be able to fit that same box: boring, no surprises, just increasing dividends.
Interesting to see we're not seeing the daily buy back announcements though, and price has ticked up a bit.
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