Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hello guys, Thanks for the slightly longer reports over the last few days and your coverage of hybrids and bond rates. My question relates to the recent underperformance of IDP Education (IEL) and Ramsay Health Care (RHC). Are they simply victims of market bearish sentiment, or am I missing something? I would have thought they would be more resilient given their intrinsic market fundamentals. Thanks.
Hi Angela,
The last few weeks have been unusual times with the banking concerns leading to some panic across financial markets which have indeed led to some increased volatility on both the stock and sector level, we have looked at the 2 stocks you highlighted independently below:
Ramsay Healthcare (RHC) $63.87 – we like RHC into recent weakness around the $63-4 area, it’s not on our Hitlist yet but at current levels its certainly being watched carefully.
IDP Education (IEL) $26.34 – At their February results they reported an overall beat in terms of earnings due to higher fee’s being earnt however there was obvious softness in IELTS volumes, which refers to the The International English Language Testing System, due mainly to visa backlogs. This will right itself, but the timing is unknown, as with all things in Government, seems to take longer than expected. We suspect that’s the underlying reason for weakness.
We prefer RHC over IEL at this point.
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