Simon’s stock tips
HOSPITAL GROUPS
No sign of recovery
esults from the local hospital groups were all bleak as elective surgeries, the main source of income, are still under pressure due to the pandemic. I have long not liked the hospital sector, owing to the risk of regulation due to price increases well ahead of inflation over the last decade, and I see no reason to change this view. All three listed hospital groups, namely Mediclinic, Life Healthcare and Netcare, are trading at multi-year lows with share prices back where they were ten years ago. But over that period all three have also had disastrous ventures offshore with Mediclinic the last to pull the plug. Mediclinic received an offer for its 29.9% stake in Spire Health at £2.40 per share. Mediclinic has agreed to take the
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