Some thoughts on downward pressure on this stock over time... 1....

Some thoughts on downward pressure on this stock over time...

1. It has been treated by market as a health stock. It is not. It is not correlated in way people assume.

2. The regulator has right to control price which can limit profit growth.

3. Costs can be cut short term by reducing payments to health providers. This improves profit until there are losses in market share due to being less attractive to clients - potential and existing.

4. Market share is already high. Natural direction is down in absence of high marketing spend or high benefit levels.

5. Prices are currently being held up by fund managers buying up at the same price they missed out on in the pre-bidding process. This comes to an end.

6. On top of this there are and will be retail investors who believe that $2.15 is a bargain for a year or so. This will also come to an end.

7. In the end it will be about profit and profit growth. How can a regulator allow MPL to increase prices at a rate that delivers profit growth that justifies 22 times multiples of earnings? If they drive down costs, then the regulator should argue they don't need price increases.