THIS week, one of the great divisive
arguments on the sharemarket should finally be put to rest. Namely, is
the recently privatised Medibank a winner or a loser?
Since the $5.7 billion float last November, investors have voted with their feet and bid high to get exposure to Medibank Private’s defensive growth profile, lack of debt, exposure to a strong part of the Australian economy and potentially strong dividend yield.
That has pushed the share price as high as $2.53, handing initial retail investors a 26.5 per cent profit and institutional players a still useful 17.7 per cent lift from their subscription price.
Now all of those healthy short-term gains swing squarely on Medibank Private’s first profit announcement as a public company, which chief executive George Savvides will outline this Friday. Any disappointment in the numbers compared to the prospectus forecast would quickly knock the stuffing out of those windfall gains while a better-than-expected half-year could potentially push the shares even higher.
While retail investors have progressively warmed to Medibank Private since the float, brokers have been more sanguine about the outlook, with UBS slapping a sell rating on the stock and a valuation of just $2 a share.
Read more at Click here / www.trade4x.net
Since the $5.7 billion float last November, investors have voted with their feet and bid high to get exposure to Medibank Private’s defensive growth profile, lack of debt, exposure to a strong part of the Australian economy and potentially strong dividend yield.
That has pushed the share price as high as $2.53, handing initial retail investors a 26.5 per cent profit and institutional players a still useful 17.7 per cent lift from their subscription price.
Now all of those healthy short-term gains swing squarely on Medibank Private’s first profit announcement as a public company, which chief executive George Savvides will outline this Friday. Any disappointment in the numbers compared to the prospectus forecast would quickly knock the stuffing out of those windfall gains while a better-than-expected half-year could potentially push the shares even higher.
While retail investors have progressively warmed to Medibank Private since the float, brokers have been more sanguine about the outlook, with UBS slapping a sell rating on the stock and a valuation of just $2 a share.
Read more at Click here / www.trade4x.net
