RAD - Radius Healthcare

[kiwikeith]

MST Access is a "pay to play" service from Forysth Barr as i understand it. The issuer pays for coverage. It doesn't mean necessarily that the analysis is faulty, but it needs to be kept in mind.

What's unusual and a little desperate is the fact that Radius have announced it to the market. It would be like Tower shilling the MST report that values them at $1.50.

It says at the bottom of every page that Radius has paid for the preparation of the report. In the disclosures it comments that the analysts have not been swayed in their objectivity by this arrangement but notes that if the report is unfavourable, the client may not continue to pay for future reports.

FB are projecting a fully imputed 1.4 cents total dividend for financial year ending March 2025. That is a pretty juicy net yield of 9.3% on the current 15c share price. Of course a forecast is only a forecast.

[kiwikeith]

Some interesting figures in the report. The government subsidy for a care bed ranges from $170 to $300 a night depending on the patients condition. The alternative of occupying a bed in a public hospital is $1,700 per night to the government. That government subsidy above is for the basic room. If you want something like a balcony or own bathroom then you pay an accommodation supplement. At Radius, 68% of care customers pay for this themselves and this averages $8,000 per year or $22 per night.

[Balance]

Excitement not too high this week

What's up Balance?

Big move by Radius today, W69.

The profit takers should really have been a bit more patient eh?

20c, here she comes?

[winner69]

Big move by Radius today, W69.

The profit takers should really have been a bit more patient eh?

20c, here she comes?

.

Good move and timing getting that Forbsr report out

Seemed to drive a lot of interest in Radius eh

[Baa_Baa]

.

Good move and timing getting that Forbsr report out

Seemed to drive a lot of interest in Radius eh

How long will it take though, for the punters to realise RAD paid FB for the report, like it's independent yeah nah. The report changes nothing, I reckon a day to two and things get back to normal. Radius is no different to any of the sector players and it will take more than an influenced FB report to sustain a SP revival.

[kiwikeith]

Big move today but on very small volume. Only $4,000 worth of shares traded. It will be interesting where it settles over the next few days.

[bassamrassam]

https://api.nzx.com/public/announcem...346-421374.pdf

[kiwikeith]

Another big rise today but that should be the end of it. There were 186k shares offered at 22c at the close, which is pretty big amount compared with what is traded most days. But hey it has run from 12c to 21c in the last month (ie +75%). Cannot complain about that.

[Balance]

Another big rise today but that should be the end of it. There were 186k shares offered at 22c at the close, which is pretty big amount compared with what is traded most days. But hey it has run from 12c to 21c in the last month (ie +75%). Cannot complain about that.

I would prefer the sp to consolidate around 20c (+/- 1c) until the next profit update which should take the sp to the next level. Must admit I would have been happy to see my 12c shares hit 20c by end of 2024!

Happy holder!

[Balance]

I would prefer the sp to consolidate around 20c (+/- 1c) until the next profit update which should take the sp to the next level. Must admit I would have been happy to see my 12c shares hit 20c by end of 2024!

Happy holder!

Talking to one of my contacts in Forbar about the market in general and I asked about the Radius Report, cheekily suggesting that Forbar must be hard up to offer their research for hire.

His reply was rather instructive of the poor state of the small caps on the NZX.

He said it is well known that most of the market trades are of the big cap stocks and their research dept simply cannot justify spending time on the small caps, irrespective of how undervalued or attractive they could be. So forget about stocks which are heading downwards!

And to make matters even harder for small cap stocks, their advisors (and that of the other reputable broking firms) cannot recommend stocks which they do not have research on. Definitely they are not allowed to invest in stocks with no research in their clients' portfolio accounts.

So it makes sense for small cap companies to pay for research by Forbar as they can then be recommended by their advisors and placed in clients' portfolios.

In the case of Radius, there will now be ongoing interest and investment from their advisors unless the recommendation changes.