Forum Archive Index - August 2001

[Philip Robinson <robph639@student.otago.ac.nz>]

Had a wee look since, this is one thing, maybe the only thing that I can
say I have some idea about the business on. Revenues look good, but the
NPAT is a little variable, depending I expect on district health board
surgical contracts, they have ACC contracts as well. They do a significant
amount of work for the DHB and this is relatively dependable, as the DHB
isn't going to get a whole lot of cash or surgeons any time soon.

There is a good holding by the professionals who utilise the facility,
which is always a good sign as far as business goes, and referrals.
Interesting though, as you wonder, when you are referred by your private
surgeon to a private hospital that he/she has a significant interest in,
this happens, and unlike the sharemarket there is no obligation to declare
such an interest. But this is not really relevant.

I do note that they are building two new operating theatres and they will
come on line starting next year, they also say they will invest in other
ventures they can add value to using the processes and protocols developed
at Wakefield. Three surgeons on the board along with commercial talent, one
surgeon is full time there, with own research programme on diabetes
treatment with gastric stapling surgery and cancer vaccine development,
have watched him operate at Wakefield.

As far as the risks they discuss go, the infection one is rare I expect
they run a tight ship, same as with clinical liability.

Recent ROE is 10-11%, with erractic EPS growth, compounded by bonus issue
etc. Guardian Trust have a small stake.

A float that looks good as it lets one get exposure to the private
healthcare business, although Ryman and Eldercare, give minor exposure to
hospital business, this is much more direct. Calan is only healthcare
property, not much exposure to the upside or down side, just own a building
that drs work in. No public pool though, need to be a FB client to have a
look in.






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