Thanks for your comments. Juanamigo, what do u think about JHC?...

First 5 Last

Share
Profile

Follow
King1212

811 Posts.

7

02/12/16

17:35

Post #: 21069788
Share

Originally posted by juanamigo ↑

There's not doubt the Government wants to reduce its costs in subsidising aged care, but not to the detriment of a base level of care. Given the low care/high care model whereby the aged care providers are operating in the high care space, several factors are at play here

1. The Government isn't going to allow back yard operators to set up
2. If they could set up, high care is expensive as it requires large infrastructure, whereas low care infrastructure is already in place (i.e. the homeowner's place of residence)
3. The Government needs the high care providers to be profitable, otherwise they won't invest in additional spaces which is needed given the demographics, and the government wants a private sector solution (either for profit or not for profit).

However, it is clear that the Government wants to restrict the profitability of the for-profit sector, so some of the claims will be denied but they will still have regular government revenues flowing in - just not at the levels that they previously claimed. So assuming they have high occupancy (likely) and manage their costs well (likely) and don't get too aggressive on expansion (likely), they have very sound revenues but not at the PE ratio that they once traded on. A growth stock is now a yield stock. Funny how these things happen !!

Expand

Thanks for your comments. Juanamigo, what do u think about JHC? Thanks.

EHE Price at posting: $2.62 Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

EDE

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

ME1

Banshee's historic trenches prove rich in antimony and gold for GDM

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

HotCopper Highlights: Your most watched stocks for Week 46, 2024

AN1

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

LYN

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

AUN

Cyclone signs MOU with Vale for development of Iron Bear play

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

There are more pages in this discussion • 2 more messages in this thread...

First 5 Last

Add EHE (ASX) to my watchlist

Thanks for your comments. Juanamigo, what do u think about JHC?...

Top Stories

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

Banshee's historic trenches prove rich in antimony and gold for GDM

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

HotCopper Highlights: Your most watched stocks for Week 46, 2024

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Cyclone signs MOU with Vale for development of Iron Bear play

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels