Yes it absolutely does. If inflation is heading down and borrowing costs continue to reduce Ramsay's business becomes more attractive as does the property portfolio. It seems clear to me there will be some reform in the hospital system because it's under a fair bit of stress at the moment. We have just seen aged care get a huge boost from the governments new policies on aged care and home care, which will put by my estimates 40% more capital in the system.
Having said that, 10 year bond yields went up last, so the effective borrowing cost hasn't really moved.
There was another article yesterday in the Australian about a PE firm getting a bid ready. I would suggest we are very close.
RHC Price at posting:
$40.34 Sentiment: None Disclosure: Held
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