To Medi-bank or Medi-sell

Brendon Lau

Vantage Point Partners

To Medi-bank or Medi-sell? Monday is the first day retail investors who applied for Medibank (MPL) shares through its website can sell their holdings. Many might be thinking of taking quick profit given the number of naysayers criticizing the price and growth prospects. These arguments sound familiar to those used against QR National float. Cries that QRNational was priced for perfection and complaints about its mediocre growth were commonly echoed in 2010. The only real earnings growth avenue for QRNational was cost cutting. Sounding familiar yet? The kinder comments were QRNational is an infrastructure stock with inflation-like returns. The less tactful told me that it isn't worthy of an infrastructure play. Its rail tracks give it a safe feel but its rolling stock says different. But those that bought QRNational would be grinning. Not saying MPL will travel on same track, but decision to sell or hold shouldn't be based on current criticisms. There needs to be a FRESH reason to dump MPL. The things to look for is whether MPL can find new growth. This might include acquisitions, new channels or new markets.

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Brendon Lau
Brendon Lau
Associate Director - Investor Relations
Vantage Point Partners

I am with Australia's leading small caps investor relations and media relations firm, Media & Capital Partners. I worked as a small caps analyst and journalist prior to MC Partners. Views are my own and should not be regarded as advice or...


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