Good value, page-11

I think with SHL people are not seeing the forest from the trees. Sure governments are cutting costs and that provides some headwinds for a regulated business such as this, but the overall multi-decade tailwind theme still in play is the ageing population, in particular the baby boomers, and this is going to accelerate in the coming years as they re-focus on their health and longevity in retirement. SHL grew for years along with its share price with their acquisitions and organic growth, this is despite the ageing theme benefit to their business only ramping up in recent years. And sooner or later governments are going to accept the fact that healthcare spending as a % of GDP is structurally going to be much higher. In 2013 Australia was at 9.4%, but USA was at 17.1%. In 2013, China was at a meagre 5.6%, wait till this ramps up as their population ages and the downstream benefit potentially to Australian healthcare companies who go overseas and operate in China, eg. RHC.