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Netcare a buy at these levels?

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Not applicable
Hi guys, With Netcare due to release its interim results next week (most likely Friday) and seeing that Netcare has been trading around a support level of 1400c (albeit it was broken the last two days) but has this evening closed at that round figure. And given that the share is in over sold territory. Would one consider this share a buy with an horizon of 1 to 3 months using CFD's. Netcare also has typically a 2 month waiting period for the dividend. My thinking is to hold the share 1 month past the LTD to try and skim the dividend and allow chance for the (what I suspect will be around 22 to 25c) dividend amount to be regained, after the drop on ex dividend day. Any opinions would be appreciated.
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51 REPLIES 51
gareth01
Regular Contributor
I was thinking exactly the same position, but I decided to buy ASTRAL when the pre-trading statement came out and the big drop in share price - which I am now very happy I bought in. Re: NTC - my only concern is their UK operation and the state of UK economy, will consumers have surplus funds to pay for private hospitilsation?? Also they have large amount of debt to service... But longer term, I do like the share (but not from a trading perspective)
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Not applicable
Many thanks for the respose. Will watch NTC closely. Choose NTC in the light of (my personal opinion) that the NHI will never work under its present proposed form is SA. Lets wait and see.
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Not applicable
Many thanks for the respose. Will watch NTC closely. Choose NTC in the light of (my personal opinion) that the NHI will never work under its present proposed form is SA. Lets wait and see.
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Rams
Super Contributor
for Netcare to work , then the NHI must work....so buy NTC if you think the NHI will work!
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prancing_horse
Super Contributor
Sold my RBW sept last year after holding them for almost 11 years, looked at ARL who have outperformed the former the last 6 months but I think they are going to find the going tough this year. Maize price has eased a little but the 50% jump in the soya price in the space of a few months is going to sqeeze margins.These two commodities are the main ingredients in the poultry and animal feed industry, so I think RBW,ARL and CBH will be trading with very little upside unless there is a big reverse in both maize and soya prices. As for NTC, bought last week with long term view, not a share for CFD trade, OMI.
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Not applicable
I disagree. If the proposed National Health works properly, we will not require Netcare and Mediclinic!
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SimonPB
Valued Contributor
ARL sit on both sides of the fence, feed and chickens ..
Netcare UK operations is not private health care, tis NHS health care ..
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THRESHOLD
Super Contributor
This is not a traditional trading company. I think you need to take a view here. If you have been following the whole NHS debacle - it looks like a much milder version of our own (South African) mess. So here's my view - for what it's worth - NHS is hopelessly underfunded and bankrupt practically from the outset - certainly in terms of her funding profile moving forward (ie her budget.) Back the private sector and you ought to do well - BUT - you may need to be very patient. Anyway - I a am certain I am in good comany holding these views. NETCARE is lagging due to her balance sheet funding structure rather than her operating prospects. She has a debt obstacle to negotiate while she waits for National Health to fall on it's face and turn up at one of her hospitals.
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prancing_horse
Super Contributor
Aware of that, but feed price increases to both dairy and broiler producers have not kept up to their raw material price increases, thereby shrinking their margins, likewise the cost of producing 1kg of chicken will certainly increase but will not be able to pass all this increase to the end consumer who is under pressure and Brazilian imports.
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THRESHOLD
Super Contributor
Not to mention the fact that their next biggest cost is "power." That can only get worse.
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Rams
Super Contributor
er, you got that wrong...Netcare(and Life Healthcare) will be the biggest roleplayers in the NHI!The NHI will succeed becos of Netcare!
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THRESHOLD
Super Contributor
er... - NHS is in the UK! ...You got that very, very wrong!!
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Rams
Super Contributor
well, you made an inference to NHI...who cares about NHS??
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THRESHOLD
Super Contributor
Firstly - I cannot MAKE an inference. I imply. You then infer from my impliication. Please look this up.
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Rams
Super Contributor
and thats the point...it will only work with the help of Netcare, Life HC and Mediclinic...the goverment will need a huge private sector buy in to make the NHI work....
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THRESHOLD
Super Contributor
Seconly - I did NOT imply. I stated openly- NHS! - and more than once and in CAPS.
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Rams
Super Contributor
er, that was a response to hybridgel
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THRESHOLD
Super Contributor
Thirdly - since NTC is heavily invested in the UK - anyone looking to buy shares in this comapny had BETTER CARE!!
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Rams
Super Contributor
it looks like a much milder version of our own (South African) mess. ???key word..."milder"
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