1. largest aged care in Australia, with good free cash flow.
2. YES it has used its cash to expand - so yes, it doesn't have any cash, and it owes money for to the people in its beds as deposits. But the reality is, the chance of everyone leaving and asking for their deposits back is basically ZERO.
3. its FREEcash flow estimate for this year is over 100m.
4. it can cut its dividend, which is currently yielding 15% at this price.
5. its trading at .7 book = its assets are worth 30% higher than here.
6. Technically trading 11 RSI. super oversold.
7. BEFORE AFR article it had dropped 40%, now with today its 50% cheaper than before results and 70% cheaper than its high.
8. CITI group got stuck with 17m shares at 3.15, and was offloading as much as it could without hurting price. no doubt it will be still unwinding here today as it cant keep this risk. It was the biggest broker on Friday - trading over 13m worth. but not enough to unwind its position it got stuck with from the CEO.
9. SHORT interest will provide support - somewhere between 10-15m shares short.
10. large holders have been adding - REGAL the latest, and it said that it bought shares on Friday at 3.15
11. CROSSES. DB has crossed 1.1m shares today at 2.44 -> watch this level.
12. BROKERS -> analysts have changed price targets after the results, with the lowest being MS @ $3.50 and highest being UBS @ 6.95.. average at $4.48
13. FEAR -> MARGIN LONG HOLDERS -> UNWIND DAY.
14. GAP, GAPPED LOWER from 3.08 to 2.75. Generally gaps CLOSE. so we may go lower eventually, but I think we close that gap.
ALL depends on the close -> I would buy here sub 2.40.. if we get a reversal to around 2.70 then this capitulation low on high volume = positive.
. GOODLUCK ALL.
EHE Price at posting:
$2.34 Sentiment: Buy Disclosure: Held
