As the chairman pointed out in today's AGM presentation, JHC has...

As the chairman pointed out in today's AGM presentation, JHC has always focussed on the highest end of the acuity spectrum so it is expected that even with ACFI changes (which seeks to reclassify new and reassessed residents), most of the residents in Japara's facilities will still be classified as "high" meaning the funding from the government will be unchanged for such residents.

Furthermore, Australia will need an additional 76,000 beds over the next decade requiring $33bn of investment before the baby boomers turn mid-80.

So I believe that JHC is very well placed in this industry during the deregulation period to thrive and that's due to its strategy of focussing on highest-care residents such as those with acute dementia and round the clock assistance.

Additionally, I expect short positions sitting at 7% to be closed out until about 4% of total shares issued. Fund managers such as Perpetual Limited are also paying close attention to buy on dips to take advantage of the 8% fully franked grossed up dividend yield.

Cheers,

Ninja Tuna of the Bering Sea