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Advanced HEALTH

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SimonPB
Valued Contributor
an health care is expansive and governments around the world want to reduce that cost, as mentioned we already seen the start locally, next is NHI in some or other form and could we see price controls in health care in time, perhaps ?? now sure the co's still make money, but you want companies with pricing power and if gov is meddling in their pricing model then they do not have great pricing power .. so two crosses for me from legislative risk and reduced pricing power ..
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Harathke
Regular Contributor
Regulatory and legislative risk is real, but in this case the focus on price works in the Day Hospital's favour. I view this market as similar to generics in South Africa about 10 to 20 years ago, where market and regulatory forces both drive the healthcare market towards the most cost effective solutions. In this case, the cost effective solution is Day Hospitals. Hence, regulatory and legislative risk likely to work in Advanced Healthcare's favour. But, then again, who knows?
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warhippo
Super Contributor
Just out of interest: What would you think these guys are going to do or doing what Mediclinic et al is not already doing?
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Harathke
Regular Contributor
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Preston
Super Contributor
lol, if someone needs to undergo an hemorrhoids operation, he will go to a day clinic to undergo that procedure.After the procedure, you apply some hemorrhoids cream and you then send him home to suffer in "private"
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kwagga
Super Contributor
This market is potentially huge. Just take moslem Indian people for instance. They have diffent requirements regarding food and toilet facilities etc. You could build a few day clinics just for them. This is going to hurt some doctors and specialists owning such facilities and lining their pockets the most. I think there is HUGE potential in this space.
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Preston
Super Contributor
@kwagga, already a subscriber of this IPO +/- R50k.
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kwagga
Super Contributor
You might end up getting R5k if they are 10x oversubscribed for that R50k. I send R200k off, and expect to get maybe R20k in shares and the rest in change.
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Preston
Super Contributor
@kwagga, then i will be quick to dump those shares in the open market.
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SimonPB
Valued Contributor
they will likely do full allocation below a level, say R150k. So anybody below that gets everything and above you get pro rata, just depends what that level is
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Yatagan
Frequent Contributor
Day case surgery is just that - you go in the morning, have the procedure, spend time in recovery and after a review by the surgeon, you are discharged and return home. Why would a new group have an advantage over a Netcare, Life Healthcare or Medicross hospital?
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warhippo
Super Contributor
Precisely my point. As daycare and day procedures happens at these hospitals since many moons ago.
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Prestonmyhusban
Regular Contributor
@warhippo,Do you have Medic Clinic shares in your portfilio?
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warhippo
Super Contributor
Wish I had. But, had shares in a Day hospital taken over by Mediclinic.
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kwagga
Super Contributor
They don't need an advantage - They can just do what the rest did, and make tons of money.
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kwagga
Super Contributor
Advanced Health LimitedÂ’s (AVL) initial public offer (IPO) of 80 million shares at R1 each has attracted applications for nearly 217 million shares, the firm announced on Tuesday.
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Preston
Super Contributor
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kwagga
Super Contributor
Have no idea....they still neeed to decide on how they will allocate
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rsalie
Super Contributor
should be announced via SENS before Friday (listing day)
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