Japara Healthcare (JHC), a provider of aged care services that we recently initiated a position in, suffered a regulatory setback during June and the stock...

Japara Healthcare (JHC), a provider of aged care services that we recently initiated a position in, suffered a regulatory setback during June and the stock fell 13%. It was announced that a dementia supplement of $16 per day paid by the federal government to assist with the costs of providing care to residents with dementia, and other severe behavioural disorders, would be discontinued from August 2014. Pleasingly, however, the company announced several operational measures which ought to largely mitigate the earnings impact of this reduction in government funding. We have met with the management team of JHC several times in the past month, including a site visit to the Central Park aged care facility, and have been impressed by their ability to articulate a strategy to build shareholder value. We used the share price weakness during the month as an opportunity to build our position in the company.


2 topics

OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter