RHC, page-25

SP down because of international sentiment towards equities and not because of the Capio bid, IMO. The Capio Directors recommending acceptance of the offer is positive. I very much doubt if the CEO is going to be blamed for the Wall St sell-off.

The most hard hit stocks from the sell off are those with a high PE and RHC falls into this category.

I have RHC on my watchlist but waiting to see how the markets react over the following days and also comparing its value against other growth stocks that have also been seriously impacted. I have been building up cash and selling down stocks over the past two months waiting for this situation but I do not have an opinion as to how much further the sell-off will continue or for how long. Mr Trump will continue to jawbone in an attempt to bring Wall St back up because ot the mid-term elections in the US but IMO, his policies have only worsened the current situation.

I think that RHC still needs to overcome the market negativity towards private hospital prospects in Australia and UK that pushed the forward PE down before this sell-off, while this has been amplified by the current market behaviour generally.

If you believe in the stock, then I would hold and even look at buying more in the forthcoming days, provided you are willingly to wait some time for a recovery. Whether RHC's future growth can restore its SP to a high PE is a question that you will have to answer for yourself.