do the forward sums, page-2

I respect your view and you may well be right.

RHC has and is doing well. It is the largest private provider in Australia and building a big overseas presence as well. It has and is still riding the wave of increased spend on health boosted by aging populations in the developed world as well as new procedures / treatments.

Continued decline of public health services and increasing gap between rich RHC customers and poor help also.

Australia has a skilled base and is well placed in the health and biotech fields and I think we are competitive there given our high quality of service and systems.

The question I have is purely on how much you are paying for RHC. There is no guarantee they will continue to assimilate operations from around the world using the same formula successfully into the future. It is priced for 20% growth but many companies strive for 20% growth and don’t deliver and have hiccups along the way.

Major shareholder 36.2% Paul Ramsay Holdings Pty Ltd is the cornerstone and I doubt they will ever sell or need to sell shares. So I think shares are held tightly and anyone wanting a piece of it is paying a high price for it. What are the other bigh holders?

Recommendations (taken with a grain of salt) average out at a hold at best by my reading.

The chart is almost vertical and it is way above its 180 day moving average at present with a 50% rise in the last 12 months.

The market is high in general at present and there is still a bias for safe defensive health stocks.

All this says take some more off the top to me.

I could well be wrong and was wrong in the $30’s when I also sold. If it keeps growing its bottom line at 20%pa for the next 10 years I am definitely wrong.