Morning Report Monday 14 July 2014
The Australian healthcare space has been a market darling over recent years as the sector soared due to Australia’s ageing population. People aged over 65 is the fastest growing age group, up from 2.1 million people in 1993 to 3.3 million people in 2013. The largest problem, from an investment perspective, has been trying to identify value. P/E’s (Price to earnings ratio) skyrocketed ahead of the market as the sector became the place to have funds. However two situations have coincided to return some value to the sector:
Markets around the world have been focusing on value and crushing stocks with overly optimistic p/e ratios.
Healthscope is floating in Australia on July 28th looking to raise as much as $2.57 billion to become the second largest hospital operator.
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