Forum Archive Index - August 2001

["Ben Dutton" <bendutton@sharechat.co.nz>]

Hi Phil,

Thanks for the post - great to have a perspective from someone who is very
familiar with the industry .  Brain Gaynor also wrote about the float in
yesterday's Herald - here's the link in case people missed it.  He regards
the issue as slightly overpriced and gives his reasons why.

http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=207695&t
hesection=business&thesubsection=markets&thesecondsubsection=sharemarket&the
tickercode=

Still though, great to finally see a new issue hit the NZSE.  We're in the
eighth month of the year and it is our first IPO...that's a bit worrying...

Best Regards

Ben Dutton

----- Original Message -----
From: "Philip Robinson" <robph639@student.otago.ac.nz>
To: <sharechat@sharechat.co.nz>
Sent: Thursday, August 16, 2001 10:50 AM
Subject: [sharechat] Wakefield Private Hospital Listing


>
> 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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