Well said ST.
When 70 to 80% of traded volume on Monday and Tuesday this week are indeed gross short positions being opened, it suggests that investors aren't willing to sell anymore. It indicates that shorters will start to show fatigue when downward momentum slows and hedge funds run out of ammo.
Check out this Bloomberg video on the hedge fund investor mass exodus! http://www.bloomberg.com/news/videos/2016-08-25/hedge-funds-see-biggest-redemptions-since-2009
This is the opposite extreme to whats happening to Estia where shorts are only 15-25% of daily volume on the first two days of the week indicating investors are the main ones selling.
I will definitely be building this long position at current levels as the dividend yield is approaching 8.00% as we speak (now at 7.64% fully franked grossed up). Government ACFI funding will increase at low single digits in FY17 but not decrease as indicated in the results presentation and the industry is already moving to a user-pays business model.
Shorting JHC in my humble opinion is trying to go against the Aussie population. We invest in JHC so that we may provide for more aged care facilities being opened across Australia hopefully driving down accommodation costs for the elderly.
We can simply do this all day for the next 40 years until the shorters are living in one of JHC's facilities themselves!
Cheers!
Ninja Tuna of the Bering Sea
JHC Price at posting:
$2.15 Sentiment: Buy Disclosure: Held
