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MM’s updated views on RHC please

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MM’s updated views on RHC please

Hi MM, Given your comments on healthcare stocks this morning, are you still "cautiously long and bullish" on RHC and comfortable continuing to hold it at this stage, including with regard to a potential sale of their stake in the Asian JV, Ramsay Sime Darby? From this morning's report, it sounds like you may be considering selling or reducing the position. Some additional comments on your current thinking on the stock would be appreciated. Thanks, Darren

Answer

Hi Darren,

We currently hold 5% of the MM Growth Portfolio in RHC which has been a frustrating journey since Mays disappointing result i.e. the company reported revenue growth of 10.9% for the first 9 months of the year, below market expectations although we believe the stocks been harshly dealt with falling over -15% over the last 2-months.

We liked the recent news of the potential sale of their stake in the Asian JV, Ramsay Sime Darby and believe the stocks okay value below $57 if they can show continuing momentum at their FY23 results due for release on the 24th August, which is what we are waiting for Darren. While we are not planning to add to our position i.e.  we are “cautiously long and bullish” RHC believing at least the next 10% is likely on the upside, we are unlikely sellers before results land, but never say never!

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Ramsay Health Care Ltd (RHC)
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