Simon’s stock tips

Finweek English Edition - - SIMON SAYS -

The Mondi in­terim man­age­ment state­ment sent the stock soar­ing higher as it hit al l t he r i ght but­tons. Vol­umes were up, prices were higher and in­put costs were down; share­hold­ers can ask for noth­ing more from a busi­ness. In the case of Mondi, what it also has is a very strong bal­ance sheet that puts the busi­ness in a very strong po­si­tion. Tak­ing all this into ac­count, on a his­toric P/ E of around 18 times and a for­ward P/ E of some 16 times, the stock is not in­cred­i­bly cheap, but com­pared to t he over­all mar­ket, Mondi i s cer t a i nly cheaper than most other stocks. have thought that around the 70%75% oc­cu­pancy lev­els would be pretty much the best a hos­pi­tal could do, but look­ing at global ex­am­ples I found that the ma­jor­ity of hos­pi­tals are above 80% oc­cu­pancy, with a num­ber even at 90% or 95%. So, there is cer­tainly scope for much higher oc­cu­pancy lev­els and hence greatly i ncreased prof­its, but I sus­pect the num­ber is not likely to change quickly.

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