For our Livewire Christmas Cracker, we discuss why we have shorted a number of Aged Care stocks. Firstly, because of the upcoming Royal Commission. and secondly, the risk to incoming bed pricing and the associated RAD flows due to the slowdown in the housing market. The potential impacts from the upcoming... Show More
Historically, our view has been that there is a supply and demand imbalance in the aged care sector, with the lack of supply and rising demand only going to be exaggerated over the next few years as the bulge bracket of the Australian population moves deeper into retirement. The proportion... Show More
Aged-care operator, Japara Healthcare (ASX:JHC), provides exposure to the strong thematic of Australia's ageing population and its need for high acuity care that many Australians will require. Unlike retirement village living, aged care is not a discretionary decision for many. Show More
The aged care space has been battered since late 2015 and Japara's (JHC) result yesterday did not help, with the stock falling 5.9% to $1.90. The question we ask ourselves is it time to step up and buy the sector which clearly should benefit from an ageing Australian population -... Show More
Market closed positive despite multiple efforts to go higher were met by profit taking on the back of previous five out of the six days delivering negative returns. US market continues to hold stretched levels despite US dollar index beginning to roll over. Global markets continue to struggle with historically... Show More
Following reporting season, a number of previously well-loved sectors have fallen out of favour with the market. Outdoor advertising, aged care operators, and telecommunications companies have all seen falls of around 30%. Despite the well-established difficulties of operating in the aged care sector, investors got “over-excited” about this area and... Show More
A number of analysts have downgraded Australia's aged care operators following a 'clarification' from the government on the types of fees that can be charged: https://agedcare.health.gov.au/programs/residential-care/charging-fees-for-additional-care-and-services-in-residential-aged-care-including-capital-refurbishment-type-fees Show More
CommSec Advisory’s Nicky Kritikos speaks with Tom Piotrowski about expectations for future US interest rate rises after Friday’s jobs report, Tuesday’s RBA Board Meeting & the outlook for the aged care sector For more market insights, visit https://www.commsec.com.au/market-news/the-markets.html Show More
The two listed aged care operators we formally cover – Regis Healthcare (REG) and Japara Healthcare (JHC) – have come under significant selling pressure (fallen over 15%) since the Budget cuts were announced in May. In response to the higher-than-expected increase in residential aged care funding, the government has announced... Show More
Australia’s residential aged care providers are seemingly simple businesses that operate provide accommodation and socially-imperative care for our elderly in return for a fee. However, the economics of these businesses are surprisingly complex. Probably the most confusing aspect relates to Refundable Accommodation Deposits (RADs). Think of RAD as a deposit... Show More