all government policies are now known and they suck. so there is no more upside news, it is a long grind from here.
the emphasis on home care means that residential care occupancy will be under constant pressure, with fewer willing customers and shorter stay times.
the profitability from the government announcements do not substantially improve the sector's outlook.
as pointed out above, the supply of residential care places in profitable (metropolitan) areas is plentiful and competition intense.
unless the rules of accommodation pricing change, the growing balance of refundable accommodation deposits cannot be meaningfully put to work unless expansion and development is your business plan. This will not generate increased profits, merely more work and in turn more balances. The government needs to permit the charging of additional accommodation fees to meaningfully increase profits in the sector.
Previous share prices were based on hope. There is now no more hope because all factors are known. The only other possibility is a higher bidder which I don't see happening.
JHC Price at posting:
$1.20 Sentiment: Hold Disclosure: Held
