Ann: Appendix 4E & 2018 Annual Report, page-2

A lot of talking down of the outlook for the business.

Against the current embarrassment of riches, these guys are bracing themselves [*] for some sort of regulatory backlash, both from the health ministry of the expected incoming Labor government, as well as a potential change in capital requirements from APRA.

These extraneous factors, combined with a weak consumer environment (and the fact of the matter is that elective surgery has discretionary spending element to it), could lead to a very good buying opportunity of the stock in the coming 6-12 months.


[*] Of course, they are very good at managing expectations, and have some form in talking down the prospects of their business, and often lamenting how tough things are for the company.  Given the political sensitivities surrounding health insurance, it is probably never a smart thing to shout from the rooftops how wonderful things are and that the business generates ROE of ~25%.