Two stocks the market has overlooked
Two stocks the market has overlooked. Life Healthcare delivered a strong result, beating prospectus forecasts and organically the business looks to be firing. The stock reacted positively on the result but remains the cheapest, quality healthcare company on the market. Trading on a P/E of 14x with a strong balance sheet and good yield in a sector that has led the market for the past 18 months... We think the result was overlooked simply because it is a small company. PanAust reported a result that largely disappointed as the new CEO took a $265m impairment charge. However, we believe that the result was an important step in simplifying the business. The strategic direction of the company is very clear - maximise cash flow from the two operating assets in Laos and use this to fund the development of Freida River. Operationally both Phu Kham and Ban Houayxai are performing well, and investors' apathy towards capital investments has created an opportunity to invest in a good suite of mining assets at an attractive price.
1 topic