Booms, busts, fashions and fads have been part of the investing landscape almost since the beginning. Today it’s all about dividend yields, ‘Trumponomics’, and a second wave of dot-com bubble hysteria. When it comes to the healthcare industry, few stocks have as much glam as Australia’s two largest hospital operators, Healthscope and Ramsay Health Care – and there are plenty of good reasons for that, which we’ll get to in a moment.
Healthscope’s share price, however, has fallen around 30% since the company warned of slowing volume growth in October. Is this an opportunity or a time for caution?
Strong tailwinds from pipeline
Debt, cash flow, CEO add risk