It looks a good buy at this 11-12c level. Not sure if many have noticed what they're doing.
Here's a recent report from The Australian
Pulse Health Group (PHG) 15c: Print Tim Blue | January 11, 2008 AGEING baby boomers are expensive critters, you can be sure. All those tricky knees, bung ankles and fading eyes will consume vast quantities of cash, a prospect that excites Pulse Health Group. Once known as Biometrics and run by Peter Mangles (a former paramedic of the late Kerry Packer), Pulse Health has a business model that seems to make sense. It will run a network of private regional hospitals on the east coast, with associated community nursing and home care services.
Pulse Health shares rose as high as 21c in October but have since eased, amid considerable activity. A $10 million capital raising organised through Paterson Corporate Finance has helped fund the $20 million purchase of three hospitals and a community home service run by Community Private Health Care, to be settled this week.
After these acquisitions, Pulse will have 10 private hospitals and community health centres stretching from Bega to Kingaroy under its wing, and more are sought.
"We are looking at a number of facilities, including three or four hospitals, and we would like to start due diligence on those," Mangles says. "We are also looking at further homecare services."
Mangles has a background in health administration and clinical practice and is a former chief executive of the Westpac Rescue Helicopter Service. While working at Mayne Health he met then chief executive Stuart James, who this week took over as chairman of Pulse from John Hewson.
It can sometimes be an eye-opener to see the size of the dollars in health care, but clearly smarties such as Bill Wylie know these things. The Wylie Group is a substantial shareholder in Pulse with 21.5 million shares, or close to 16 per cent.
Pulse will have annual revenue of $28 million once it completes the 10 acquisitions.
Knowing that spending on baby boomers has only one way to go, Pulse Health has to rate as a speculative buy
PHG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
