Finweek English Edition - - COVER - Net­care, the top


per­form­ing stock in the seg­ment over the past 12 months with a re­turn of 56%, has op­er­a­tions in SA and the UK, where it pro­vides health­care ser­vices on con­tract to the state-owned Na­tional Health Ser­vices (NHS), which faces gov­ern­ment spend­ing cuts. Net­care said at the re­lease of its an­nual re­sults in Novem­ber that it ex­pected de­mand for pri­vate health­care in SA to re­main strong and to sup­port its growth over the next few years.

Of nine an­a­lysts polled by INET BFA, eight rated it a buy and one a hold. Trad­ing at a P/E of 25, the stock is cer­tainly no longer cheap. “The hos­pi­tal stocks are look­ing good, but be care­ful of the price,” says Beelders.

One fund manager, who feels lo­cal eq­ui­ties in gen­eral are over­priced at the mo­ment, cau­tions against ag­gres­sive share-buy­ing. “The mo­ment you have to jus­tify an in­vest­ment in A be­cause it looks cheap rel­a­tive to B, it’s prob­a­bly time to opt for op­tion C: cash,” the an­a­lyst said. “An­other op­tion is to look at eq­ui­ties abroad. Given the op­tion be­tween Aspen and Glax­oSmithK­line at the mo­ment, for ex­am­ple, Glax­oSmithK­line would win hands down.”

3 500

3 000

2 500

Jun ’ 14

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