Nmc Health Investors - NMC

Nmc Health Investors - NMC

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Nmc Health Plc NMC London Ordinary Share GB00B7FC0762 ORD 10P
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 938.40 01:00:00
Open Price Low Price High Price Close Price Previous Close
938.40 938.40
more quote information »
Industry Sector
HEALTH CARE EQUIPMENT & SERVICES

Top Investor Posts

DateSubject
02/3/2021
08:57
diverzeusy1: Mohdusman442 Does this mean he will be helping out his old investors 😀👍 Don't hold your breath on this one. I feel Shetty is and always has been full of 💩 As you say, too many Mr bigs in this fiasco, and it's us, the small shareholders who suffer the worst. Institution funds had millions in this, but they are worth Billions, it's like us loosing a fiver to them.
30/8/2020
18:45
mohdusman44: hxxps://www.thenational.ae/business/nmc-health-faces-legal-action-from-ivf-clinics-founders-1.1070274 Shetty and Prasanth are culprits. These two criminals should be jailed for life. Look at the audacity of Prasanth, he did not even took board approval for the trasnaction involving price gaurantee. These two fxxxxxs had screwed everyone, right from bankers, regulators, investors, govt agencies etc. Now shetty is crying foul. Its like the patriach and his foster son looting their own house and shifting the blame on maid, cook, driver etc. Bloody bxxxxxxs.
11/4/2020
19:35
damp seaweed: I very much doubt there is much influence a bunch of very small investors can have with a Facebook page. I’m sure there are a couple of significant shareholders that will have the muscle to seek redress. I would step back and leave it to the big boys. If they are successful, then all investors on the register will benefit. But I wouldn’t go getting your hopes up. Far better to put it down to experience and move on. Avoid the stress. .............As the company is/ or is about to be placed in administration then technically the shares still have a value and therefore anyone holding a short position will be locked in that position. The brokers will freeze the shorters position, tie up their margin and continue charging for the privilege. They could be stuck like that for a very long time.....just like the shareholders........... I guess one advantage of a Facebook page is that it can be a bit of a support group, away from the psychics, fantasy traders, prats, and wannabe whelk sellers
07/4/2020
07:54
urbanvoltage: Thoughts...NMC could issue 400 million shares to an outside institutional investor at £10...like Capital Group, for £4 billion they would be buying a large slice of a great asset... Dubai: NMC Health getting placed in administration by a UK court order would be the “worst-case scenario” for the company’s future, according to the hospital operator’s Executive Chairman. “Especially in the current circumstances,”; added Faisal Belhoul, who took on the position just over a week ago, after picking up 9 per cent in the beleaguered Abu Dhabi headquartered company. Coming under administration will lead to “value destruction and will have a significant influence on NMC’s business, stakeholders, and on the company’s ability to efficiently provide its services,” Belhoul said. “No one will disagree that putting a company through administration is destructive. It is proven by all previous cases. “To that extent, the logic really implies that all parties will have to sit down together to find a solution - especially in view of the pandemic. We cannot lose focus on that… and NMC’s role in providing its services.” What being in 'administration' means This is a situation that all businesses have well-founded reasons to dread. It essentially means that a court and its appointed administrators get to decide how the affected company is managed. The business’s management and shareholders will then have no say in the situation. Faisal Belhoul Faisal Belhoul has two priorities - work out a short-term deal with NMC's creditors on repayments. And stabilise the NMC network's operations. Image Credit: Gulf News Archive The threat of coming under administration is a live one after Abu Dhabi Commercial Bank earlier this week confirmed it had filed a request with a UK court for NMC to be placed under a joint administration. The first hearing is scheduled for April 9. If the court judges in favour of ADCB, it will mean that NMC’s running will come under a court-appointed administrator and not the company’s Board of Directors or management. ADCB – which has an exposure of Dh3.6 billion to NMC and affiliates - filed its request in a UK court because NMC Health is listed on London Stock Exchange Prevent it at any cost This is what Belhoul wants to stave off – and discussions continue with ADCB and other lenders who have a say in the matter. UAE banks’ combined exposure to NMC Health and its previous management is at Dh10 billion plus. (Much of those funds never even entered NMC’s books.) The April 9 deadline is “putting a lot of pressure of time,” Belhoul said. “We are doing everything possible in our direct communications with ADCB and other creditors to ensure alignment on the future direction of. “I have come into the Board of Directors with no baggage of the past. And I come with the prerequisites, the experience to deal with businesses of this scale. I do understand the language of the business of lenders. “I am here to really make things work, not sit to represent one side. That’s really important for lenders to understand - and cooperate - with me.” Backs to the wall NMC Health has had a stormy three months, since reports first came out late December that not everything was above board in the way its financials were being reported. Internal investigations were launched and led to the immediate dismissal of Prashanth Manghat, the CEO. There were also departures from the Board of the founder, Dr. B. R. Shetty, and two other principal shareholders. Ongoing investigations by the company reveal that it now owes more than 80 banks $6.6 billion – that’s $4 billion more than when these audits started. No one so far has a clue as to where the additional funds ended up. Go easy on debt payments While Belhoul keeps the channels open with banks on the UK legal tangle, simultaneous discussions are on to get them to agree to a debt payment moratorium, or a standstill agreement. If such a deal is reached, NMC gets more time to shore up its funds and then pay off lenders. But will banks agree? “I came into this situation with open eyes,” said Belhoul. “I knew there would be lots of different aspects to it. But I do see it as a national obligation… a commitment to support a company of this scale and operating in such a critical sector as healthcare. “A standstill agreement is a key component of being able to move forward. It requires lenders to be willing to cooperate and give time to the new management to address challenges and stabilize the company. The first priority for us is regain the confidence of the lender community. “They have all the right to have lost confidence by virtue of what they discovered of the previous management. “ Willing to listen to creditors It was reported that ADCB wanted a seat on the NMC Board, but still went ahead with filing a case in the UK court. Shouldn’t Belhoul and the new management have been more lenient to creditor demands? “We had openly communicated that the company recognizes the importance of lenders - as a matter of fact, we recognize them as the most important stakeholder,” he said. “We extended to ADCB all forms of access, including a seat on the Board of Directors. “And allowing them to be a part of all key tracks, which includes the investigations (into the potential cases of fraud by the previous management.) “We have so far not received any practical solutions. We hope that over the course of the discussions, there will be feasible solutions from all parties.” Bring in more money According to Belhoul, international institutional investors are keen to take an exposure in NMC despite its current predicament. “This is only my second week… but I already have received offers from institutions willing to invest and support the company and get involved in further negotiations with creditors,” he said. “If anything, it shows the extent of the relationship and credibility that I have with international investors. “I hope the NMC creditors, especially ADCB, will give me the time to display all those options and engage in productive discussions. That will be the path forward to salvage the NMC business.” ASSET DISPOSALS No decisions have been made to sell off any part of the NMC Health Group and raise funds. There had been reports about the new management planning to sell the group’s medical equipment business. “When any company goes through certain challenges, the question of asset disposal is raised,” said Faisal Belhoul. “But the priority right now is to maintain the business integrity and scale. Moreover, the company may not get the right values given the circumstances it is going through and the state of the overall market. “All divestment ideas will be evaluated in the future as part of a strategic plan of what should stay and what can go. And definitely, it will not be done without the consent of key stakeholders, including creditors.”
10/3/2020
16:45
m1das_touch: Happening too often...usually it's only retail investors who get shafted but this time all those institutional investors who were buying in prior to the suspension are likely to be taking some hefty losses too.
10/3/2020
04:02
nael2020: hxxps://www.marketscreener.com/news/ROSEN-A-LEADING-LAW-FIRM-Announces-Investigation-of-Securities-Claims-Against-NMC-Health-Plc-ndas--30132433/?utm_content=20200309&utm_medium=RSS Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of NMC Health Plc (OTC: NMHLY) resulting from allegations that NMC may have issued materially misleading business information to the investing public. On December 17, 2019, Muddy Waters Capital issued a report stating that there are “serious doubts about the company’s financial statements, including its asset values, cash balance, reported profits, and reported debt levels.” On this news, NMC’s ADS price plummeted $11.68, or over 33.7% to close at $23.00 on December 17, 2019. Then on February 24, 2020, it was announced that the former CEO, Joint Chairman of the Board, and founder of NMC, B.R. Shetty, “had pledged 7 million of the company’s shares as security for debt” to Goldman Sachs and that he held a significantly smaller interest in the Company than previously stated. On this news, NMC’s ADS price fell another 5.7%, to close at $10.81 per ADS on February 24, 2020, further damaging investors. Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by NMC investors. If you purchased shares of NMC please visit the firm’s website at hxxp://www.rosenlegal.com/cases-register-1747.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or cases@rosenlegal.com. Follow us for updates on LinkedIn: hxxps://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm.
09/3/2020
08:10
dragonheart1: What did I tell ya? From Gulf News this AM: UAE's NMC Health receives four serious bids to buy it09 Mar 2020 08:05 What did I tell ya? Gulf News; UAE's NMC Health receives four serious bids to buy it Manoj Nair, Associate Editor Published: March 09, 2020 08:22 Exclusive Those interested in UAE's biggest hospital operator include Mubadala and Hussain Sajwani Last updated: March 09, 2020 10:12 nmchealth The future of NMC Health starts a new chapter - March 9 is the final date for submission for investors interested in acquiring Abu Dhabi based healthcare operator. Image Credit: Gulf News Archive Dubai: There are four interested parties in the fray to acquire NMC Health with the deadline set to end today for submissions. One or two more potential investors could still throw in their bids in the few hours left, according to informed sources. Among the four bids, one is from Abu Dhabi investment powerhouse Mubadala, another is from Hussain Sajwani of Damac, and a third from GKI, an Italian healthcare focused firm. Hussain Sajwani Hussain Sajwani has been a canny investor, most recently acquiring luxury label Roberto Cavalli. He has been buying NMC Health shares from the open market. Image Credit: Gulf News Archive As per London Stock Exchange rules, there’s a 28-day window for official bids to be made after a listed company first announces that a bid was made,” said a senior source at a local bank. “It’s been 28 days since NMC announced that it had received bids from KKR and GKI. KKR has since said it’s no longer interested. “But there are other parties who definitely are – NMC remains the biggest healthcare operator in the UAE; it has regional aspirations and it is profitable. “The debts of $2 billion are what is going to be an issue; plus the lack of clarity on the exact holdings of its three principal shareholders, including that of the founder Dr. B. R. Shetty.” LSE requirements All takeover bids need to be formally submitted to NMC by close of business on March 9. “You never know – a new offer could still be made,” said another source. Incidentally, NMC Health shares on London Stock Exchange are still in temporary suspension. But outside of the stock exchange, the company’s shares are being actively sought. Mubadala Investment Company The fortunes of NMC Health could well be decided by Abu Dhabi powerhouse Mubadala, one of four bidders in the fray to take over the ailing hospital operator.In recent days, news came out that a “custody”; bank, which was holding NMC shares pledged to it by one of the principal shareholders, had sold some of it. It is believed that they were sold for 12.5 pounds a share, above the 10 pounds that the shares were quoted on LSE before they were suspended. Since December, there have been other instances of banks selling off such blocks of shares belonging to Dr. Shetty and former vice-chairman Khaleefa Butti Omair Yousif Ahmed Al Muhairi, and Saeed Mohamed Butti Mohamed Khalfan al-Qebaisi. It is now believed that the three own less than 10 per cent of shares in NMC from from the once lofty holdings of 40 per cent plus.
03/3/2020
16:59
jasonblue66: Credibility would then b zero, all big financial investors would lose and that would have serious ramifications throughout the financial markets. That would b basically blatant rip off and two fingers up, just look at investors list. Ithmar just bought in.But hey anything is possible, I've written off my position so anything is. Bonus going forward
08/2/2020
07:37
wardy333: One stock to be caught between these two camps is NMC Health. The Middle East hospital operator has lost 73 per cent of its value since late December when Muddy Waters, a brash US short-selling outfit with a nose for publicity, alleged that it was understating debt and inflating cash flow — claims NMC rejects. The latest in a series of lurches lower arrived on Friday, when shares fell by 22.2 per cent to hit their lowest since 2015. NMC’s tumbling share price will have affected anyone invested in a FTSE 100 tracker fund, with the exposure remaining at least until an index reshuffle scheduled for late March. The short-sellers, meanwhile, seem to have been taking profit. Shares on loan as a percentage of NMC’s free float, an indicator of bets against the stock by these investors, have fallen from above 30 per cent in the days immediately after Muddy Waters’ report to just over 9 per cent per cent on Friday, IHS Markit data show. Part of the reduction in short interest reflects share sales last month by two of NMC’s controlling shareholders, Saeed Bin Butti and his relative Kalifa Bin Butti, who dumped a 15 per cent stake to cover personal debts. Investors were led by management to believe that the sales had cleared the entire overhang of shares pledged as debt collateral, one of the bears’ main arguments. But then Dubai lender Emirates NBD unloaded a further 1 per cent stake linked to Bin Butti debt a few weeks later. Confidence disintegrated and NMC has been in a tailspin ever since, in spite of claims this week that company founder BR Shetty has been investigating ways to wrest back control. These recent events tell only half the story, however. Long before NMC graduated to the FTSE 100 in 2017, investors had been questioning an apparent disconnect between its sector-leading margins and underwhelming cash generation. Many of Muddy Waters’ attack lines should therefore have been familiar to long-term shareholders. Red flags on asset valuations and related-party transactions had already been discussed during post-results Q&A sessions and had featured in dozens of analyst notes, the majority of which saw nothing amiss and argued for calm. Anyone interested in the NMC investment case had plenty of time to get comfortable with its many complications. Yet it seems that only the bears were paying attention. NMC’s opaque and overlapping shareholder register complicates the process of finding shares to borrow, yet by early December the stock lent out was already equivalent to more than 20 per cent of the free float. Short-sellers had stacked up a nominal exposure in excess of £1bn even before Muddy Waters showed its hand. And everyone seemed to know already that NMC was fragile. Last August, Muddy Waters teased a report on litigation funding group Burford Capital by tweeting the day before that it had a UK company in its sights. NMC dropped by more than 11 per cent in what was effectively a case of mistaken identity. Publicity stunts of the type employed by Muddy Waters will never be popular with the majority of shareholders, but at least they make the money work. The example of NMC hints at a market where capital has been allocated lazily and executives are shielded from scrutiny. Analysts had been noting NMC’s potential shortcomings for years, but it took Muddy Waters’ intervention to move them from the footnotes to the headlines. Does it follow that long-only investors should applaud short-sellers for improving corporate scrutiny? Possibly, but with a caveat. The shorts have a tendency to pile into the vulnerable, not the criminal, and they can often seem blind to the bigger picture. This time last year the most hated UK-listed stocks included Aston Martin Lagonda and Debenhams, which have done very badly, and sandwich maker Greencore, which has jumped about 50 per cent after a major restructuring. Ocado, consistently the most heavily shorted stock in 2016 and 2017, is up more than fourfold since the start of 2018 after the online grocer reinvented itself as a delivery technology disrupter. J Sainsbury and pub operator Greene King were the most popular targets in 2015, in spite of the commodity price rout that would soon roil the mining sector. Even going back to the early stages of the financial crisis in 2007, the bears were mostly ignoring banks and housebuilders to target retailers such as Sports Direct. The thing about vulnerable stocks is that they will often recover, which makes following the bear pack an extremely high-risk gambit. NMC still has plenty of questions to answer, yet it looks like the smart money has already been made.
07/2/2020
16:53
mattcookson: Interesting article on ii- recommending a buy!! NMC Health: Should you consider catching this falling knife? by Edmond Jackson from interactive investor | 7th February 2020 10:59 The slump in these volatile and high-risk shares looks increasingly like market psychosis rather than underlying trouble. Down to 780p in early trading today, shares in Middle East hospitals operator NMC Health (LSE:NMC) have plunged over 65% since the Muddy Waters hedge fund published an assault on its asset values last December. In 2018, they were worth around £40. By the time you read this, the shares could be 600p, 1000p, who knows where NMC, the jack-rabbit stock, might twitch next with electrifying volatility. This, for a healthcare group in a wealthy part of the world, the kind of situation you would think should have resilience, dependable financials and hence a decent rating. Source: TradingView Past performance is not a guide to future performance Key development in founder taking back control The financial commentariat has a rush of adages, about how you should avoid stocks targeted by short-sellers, especially those operated overseas but listed in London and showing complex accounts. A bout of negative sentiment has festered into collective neurosis and now psychosis. Meanwhile, Bavaguthu Shetty, NMC’s Indian-born founder who still owns 15% of the equity, appears reliably reported as limbering up to take back control (having stepped down as CEO in 2017), which counters the sense of a business based on financial quicksand, liable to fold at anytime. He ought to know whether NMC’s foundations are reliant or dodgy, and my sense, having followed situations quite like this, is that a founder CEO would keep his head down if trouble is in the offing. A founder seeking to take back control doesn’t guarantee the business does not have any issues, but is it really odds-on that a 77 year-old (here) wants to open a can of worms? It would appear his advisers have placed on at least one respected media platform, the story about how he is conducting an operational review ahead of formal talks to explore options with shareholders and regulators. So, despite high debts that mean a market cap of around £2 billion more than doubles to a £4 billion enterprise value, a hefty $1.6 billion (£1.2 billion) balance sheet intangibles, and after my last review of the shares suggesting “Avoid” at 1,370p on 20 December, my interest is now piqued by the sell-off. Could the stock be oversold? NMC Health shares: Bargain or no-go area? Stockwatch: Should you buy NMC Health after 50% slump? 10 stock ideas from a market master Bank margin calls on director debt is the catalyst The latest de-rating from around 1,400p in early January was caused by a 1,200p placing worth £375 million - 15% of NMC’s issued equity – as a result of Deutsche Bank and Credit Suisse calling in loans on two Emirati investors/directors of NMC - Saeed al-Qebaisi and his relative Khalifa al-Muhairi. Another 1% was sold at 1,250p on 23 January and it appears the founder’s objective is to find fresh investors to replace these unstable shareholdings. It would appear the bank’s motivation was based on a straightforward reading of NMC’s fallen market value, by way of these men’s net worth hence financial risk, rather than examples where banks pull facilities on a company because it is judged inherently weak. The story around B Shetty is his looking to buy out existing Emirati investors under creditor pressure and bring in new investors. Eliminating such an overhang would indeed be a positive development. Source: TradingView Past performance is not a guide to future performance Elsewhere in “market technical” news, as opposed to company fundamentals, fund manager Capital Group raised its exposure from 11.5% over 12% in late January and disclosed that short selling (i.e. over 5% of the issued share capital) has reduced below 2.3% from 6.0% last August. The only two (disclosed) hedge funds involved bought back stock to trim their shorts on 31 January and 4 February respectively. At least there is no writing on the wall by way of market professionals’ action, to suggest NMC’s risk/reward profile is worsening. If anything, the implication is upside. NMC Health - financial summary year ended 31 Dec 2013 2014 2015 2016 2017 2018 Turnover ($ millions) 551 645 881 1,221 1,603 2,057 Operating margin (%) 15.1 13.7 12.6 15.1 17.1 18.7 Reported earnings/share ($) 0.37 0.41 0.44 0.71 0.90 1.19 Normalised earnings/share ($) 0.37 0.41 0.46 0.75 0.96 1.21 Earnings per share growth (%) 7.4 12.3 10.5 64.1 28.0 25.8 Price/earnings multiple (x) 10.5 Operating cash flow/share ($) 0.46 0.46 0.45 0.94 1.35 1.85 Capex/share ($) 0.42 0.60 0.43 0.32 0.32 0.79 Free cash flow/share ($) 0.04 -0.14 0.02 0.62 1.03 1.06 Dividends/share ($) 0.04 0.05 0.06 0.11 0.18 0.18 Yield (%) 1.44 Covered by earnings (x) 8.34 7.63 7.12 6.67 6.95 6.56 Net asset value/share ($) 2.08 2.42 2.63 4.44 5.33 6.26 Source: historic Company REFS and company accounts NMC continues to rebuff any sense of wrongdoing Last Tuesday, NMC announced that, in response to Monday’s further drop from around 1,300p to near 1,000p, “it knows of no specific reason” and full-year 2019 results are due in line with management’s expectations. If market guidance reflects those expectations, consensus is for a 27% rise in net profit to $312 million net profit for normalised earnings per share (EPS) up 24% to 150 cents and the dividend to 28 cents. The market rating for NMC shares implies a current sterling-based price/earnings (PE) ratio of around 7.7x, although the yield is barely supportive at around 2.5%. The stock clearly says investors are now dubious of NMC’s earnings presentation, hardly backed by yield (although with a professed operating margin over 18% and a 21% return on equity, investment should be rewarded).
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