Nmc Health Share Discussion Threads

[panic investor] 23/8/2018 17:06

Added a few at the end

[arja] 23/8/2018 12:50

in spite of all that which makes some sense , it can not be wrong to sell something which is showing a short term downtrend and buying back at a lower level when correction deemed to be over .

[douglas fir] 23/8/2018 12:18

Subject: The unspoken sin of investing is selling good stocks too soon



"The unspoken sin of investing is selling good stocks too soon

A couple of years ago I met a fund manager in London who recalled with dewy eyes how cheap stocks became in late-2008 as the world trembled after the failure of Lehman Brothers. He fondly reeled off the household name blue-chip US companies his fund had snapped up at rock-bottom prices which went on to strongly recover the following year.

When asked if his fund still owned any of these wonderful shares he gave me a puzzled look. He was a value investor, he said somewhat defensively, and had sold all of them after they rallied and became, in his view, expensive. His fund was now filled with miners, foreign oil companies and all sorts of low-quality junk. Most of the excellent companies he had sold back in 2009 and 2010 have since trounced the wider market, and the performance of his fund.

The investing mistakes that commonly receive the most attention are when people buy something that falls in price and results in them suffering a loss. The second type of mistake people focus on are those of omission, or when an opportunity to buy a great investment is for some reason missed. Far less attention is given to a common mistake that is arguably a greater sin than both of these: selling an investment too early that goes on to perform fantastically well for many years.

The British fund manager John Armitage, one of the most successful, yet lowest profile, stockpickers in the world, described in an interview from 2007 how many of his biggest unforced errors tended to result not from buying bad stocks but from selling wonderful ones far too early.

Mr Armitage recalled how “I’ve bought stocks that have gone down, and they sear on your soul, but selling winners, that’s the big mistake . . . I have been a very bad seller of shares. I’ve sold lots of winners.”

I’ve bought stocks that have gone down . . . but selling winners, that’s the big mistake

John Armitage, fund manager
“Investors confuse rates of return with the potential for absolute gain. You make the mistake of misunderstanding the true potential,” he added.

It is easier to avoid overestimating the potential of a bad business than avoid underestimating the potential of a great one.

Frauds, fads and failures tend to burn out quickly, meaning their weakness becomes apparent over a few years rather than decades. The warning signs are usually clear. Bad businesses burn through cash rather than generate it, meaning they require constant access to fresh capital to keep going. They operate in highly competitive markets with no distinct advantage. They are prone to dilute investors by issuing additional equity or take on increasing leverage without generating sufficient returns on the capital they devour.

The long-term potential of exceptional businesses that compound their value over decades is far harder to spot.

It is a mistake committed by even the greatest investors. In 1966 Warren Buffett bought 5 per cent of Disney when it was a small-cap stock for $4m, and sold a year later for $6m for a 50 per cent profit. Disney is today worth just shy of $170bn and has returned billions in capital to its investors over the years.

“Psychologically, I don’t mind holding a company I like and admire and I trust and know that it will be stronger than now after many years,” he has said. “And if the valuation gets a little silly, I just ignore it. So, I own assets that I would never buy at their current prices but I am quite comfortable holding them.”

His advice in its broadest sense applies to all types of investors, be they hedge fund managers or individual savers who own low-cost tracker funds. Just because you wouldn’t buy now certainly doesn’t mean you should sell. As is so often the case in investing, once you have made a good decision, the best subsequent decision — and frequently the hardest to stick to — is to do nothing at all. "



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[aishah] 23/8/2018 12:12

I like to run my winners over long term. No need to sell and re-buy here at the moment imo.

[arja] 23/8/2018 11:55

It has a lovely long term chart uptrebd but may pullback to 3700 or even 3500 before resuming uptrend . Why would you not sell or sell half and buy back after the correction to take your massive profit just in case ?

[aishah] 22/8/2018 22:27

Bit of profit taking. Read the results and hold imo. Bought at 750p and no intention of selling for quite a while. Expecting £50+ in due course. Dyor

[arja] 22/8/2018 19:59

thanks for info. Probably it will struggle for a while after the spike on results

[steeplejack] 22/8/2018 18:02

The company secretary's wife has sold stock which never goes down well.Helps to emphasis the good run the stock has had.Irritating fall back but not to worry.

[arja] 22/8/2018 16:10

wow , what suddenly went down like a stone and I had to exit my day trade at a small loss having sold half at 3970 ! wonder why and I did not realise just how quickly this
stock can move - faster even than mining stocks !

[arja] 22/8/2018 14:46

analyst's tips can sometimes be the kiss of death but hope not in this case.trying to recover now and might get back to 4000 today as best case scenario .

[aishah] 22/8/2018 14:39

Barclays Capital re-iterate 'Top Pick'. Price target 4850p (from 4600p)

[arja] 22/8/2018 13:32

daijavu,
might be the TRUMP effect as dow has fallen sharply after the news !

[arja] 22/8/2018 13:26

but maybe you were too hasty to buy back as still falling although might be about to
consolidate at just above the £39 level or at £38 level at worst .

[johnrxx99] 22/8/2018 10:03

Sold on the news and bought back. Nice 8%.

[daijavu] 21/8/2018 15:50

It's not just NMC. A number of other excellent shares are behaving the same way today

[arja] 21/8/2018 14:20

but market seems to having doubts as quite a pullback from yesterday's high point !

[daijavu] 21/8/2018 08:59

NMC Health, the United Arab Emirates-based hospital operator, hit a record high after delivering a better than expected 32 per cent increase in first-half earnings before interest, tax, depreciation and amortisation.

Goldman Sachs repeated “buy” advice, saying: “We view the results as positive given the strong performance in all of the group’s segments driven by (1) successful integration of acquisitions during the year and synergies from past acquisitions; (2) better than expected ramp-up of operations at newly established assets, namely NMC Royal Hospital [in Abu Dhabi]; and (3) better pricing seen across all healthcare divisions.”

[daijavu] 21/8/2018 08:15

There's a nice little piece about NMC in the FT

[arja] 20/8/2018 13:37

panic investor .
checked ASCL and BUR charts and lovely long term uptrends . Thanks for mentioning them . I see NMC has really pulled back and might be a buy soon !

[steeplejack] 20/8/2018 09:33

LONDON - (Sharecast News) - NMC Health plumped earnings 30% in the first half of the year as the Gulf private healthcare operator's margins accelerated faster than revenues, boosted by acquisitions of a cosmetic surgery business and a chronic care specialist.Management said the financial and operational performance in the half-year was in line with expectations, with a "positive outlook" for the rest of 2018 after strong margin and the potential for guidance to be upgraded.Revenues of $932m were generated in the six months to 30 June, up 20.2% on the same period last year, with organic growth accounting for 13.4% of this growth.The healthcare division, which operates hospitals and specialist clinics from NMC's United Arab Emirates base and across 15 nearby countries, grew revenues 25.8% to $706.0m and EBITDA by 34.0% to $226.8m as EBITDA margins widened 190bps to 32.1%.Patient numbers increased 19.7% to 3.4m in the half compared to the same period last year as operational beds increased 36% to 1,530 helped by the ramp-up of what will be NMC's largest hospital, NMC Royal Hospital in Khalifa City, Abu Dhabi. Further growth is eyed from the agreed joint venture in Saudi Arabia with Hassana Investment Company once it is completed.The division was surgically augmented by the acquisition of a 70% stake in CosmeSurge, the only institutionalised cosmetics business in the Gulf region, as well as the acquisition of Chronic Care Specialist Medical Centre and outstanding minorities across several subsidies, particularly Fakih In Vitro Fertilisation unit. Management plan to rapidly expand CosmeSurge's clinics alongside NMC's existing healthcare network, which is expected to "substantially" boost its growth and margins.Other augmentations have been made outside the Middle East, including a contract to operate and manage two hospitals in Kenya, the opening of an IVF clinic in Nairobi, acquisitions of IVF clinics in Sweden and Latvia, and the £10m purchase of Aspen Healthcare in the UK, which operates four private hospitals and five clinics.The smaller distribution division, which is a wholesaler of pharmaceutical goods, medical equipment, cosmetics and food, increased revenue 8.4% to $255.0m, alongside an improved EBITDA margin of 11.9%.For the group as a whole, margins increased by 220 basis points to 24.2%, enabling earnings before interest, tax, depreciation and amortisation to surge 32.1% to $225.5m.Earnings per share were increased 30.8% to $0.561 and adjusted EPS by 30.2% to $0.669. No interim dividend was declared but a final dividend was indicated, in line with the policy to target a payout ratio of 20-30% of profit after tax.Chief executive Prasanth Manghat said: "The benefits of scale, our mix of healthcare verticals and cross utilisation of assets and business streams is now starting to be reflected through enhanced revenue and improved efficiencies and margins."Backed by a strong balance sheet, which was boosted by April's $450m convertible bond, Manghat said he saw "continuing good growth potential across different parts of the group in 2019 and beyond and remain confident in the long-term prospects of the business".In light of the demand for the group's healthcare services, the ramp-up at key locations and bolt-on acquisitions, Manghat and his board colleagues are in the process of reviewing full year guidance, which had indicated 22% revenue growth and EBITDA around $465m, and said they would provide an update expected to be provided at the capital markets day in London on 22 October.

[malcolmmm] 20/8/2018 08:54

Topped up on the news this morning

[aishah] 20/8/2018 08:49

Proactive:

NMC Health plc (LON:NMC) said it has a positive outlook for the rest of the year after delivering a jump in first-half earnings and revenues.

The company, which provides healthcare in the United Arab Emirates, posted a 32.1% increase in earnings (EBITDA) to US$225.5mln for the first six months of the year as margins grew by 220 basis points to 24.2%.

Revenues gained 20.2% to US$932.0mln, driven by a strong performance in its healthcare division, which operates hospitals around the UAE.

The healthcare division, which accounted for 73% of group revenues, saw the number of patients rise by 19.7% to 3.4mln. The distribution division, which provides wholesale trading of pharmaceuticals, medical equipment, food and cosmetics, posted an 8.4% increase in revenue to US$225mln.