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Pathology coys

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Pathology coys

The three biggest listed coys in this field are: ACL aust clinical laboratories SHL sonic healthcare HLS healius there is a smaller one in victoria also listed capital health CAJ current price .25 cents smaller but still reasonable size chairman is certainly not one of my favourite people what are thoughts on chances one of three big ones takes over capital

Answer

Hi Morris,

We’ve held Capitol (CAJ) in the past and lost money on it. The issue for ACL, Sonic and Healius is they have their own issues, battling with inflated cost bases, while Helius at least does not have the balance sheet to fund an acquisition. Using scrip (shares) when share prices are so low doesn’t make sense either. Never say never but we think the chance at this point in time a low.

Healius (HLS) is actually looking interesting here, a lot of bad news baked into that particular cake.

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Healius (HLS)
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