I’m thinking of getting back in at this price for the yield, in my job I’ve had to work in lots of aged care facilities including some Jhc & in my experience the vast majority are doing a very difficult & vital service remarkably well. The bad ones are immediately obvious & are mostly in the economically low end. The population is ageing & more people will need care, care that for many is unavailable outside these facilities. The government can squeeze but ultimately has no option but support them, given the current poor economics they need to incentivise the business model. The only thing that makes this industry currently investable is the huge discount to assets which means new capital isn’t going to be attracted into a growing demand. It makes social, economic & political sense for this essential industry to be economically viable, that is a return on 100% of capital expenditures.
JHC Price at posting:
99.8¢ Sentiment: Hold Disclosure: Not Held
