the downside

There are obviously ways in which things can go wrong with Konekt, as its history shows. The slight earnings downgrade resulting from "file portability in NSW as a result of the recent tender" is an indication of the earnings sensitivity.

But Konekt managed to turn around and start making a proft in the teeth of the GFC round one, and the sector looks like it should cope relatively well if there's a serious downturn in the economy. Health care generally is defensive, and Konekt's sector is a lot less capital-intensive than some.

So I'm bearish about the market generally, but this is one holding I'm keeping.