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Post by westerndidi on Apr 2, 2015 17:06:04 GMT 7
Dear shifus,
May I know what are your opinions on medicial shares? I'm told this industry is recession proof.
Thanks
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Post by oldman on Apr 3, 2015 6:38:47 GMT 7
I don't believe that any industry is recession proof. We are all hit during the recession... just that some industries may be less impacted than others. Many of the listed healthcare companies still depend on foreigners to use their services. When the recession hits, medical tourism will also be hit. But of course, the sick locally, still needs to be treated and if they are covered by medical insurance, they will continue to use the services of the healthcare companies. Many of the larger listed healthcare companies should still remain quite profitable during a recession..... but of course, less so than during the good times. As for the smaller players, I will not be so optimistic. Dear shifus, May I know what are your opinions on medicial shares? I'm told this industry is recession proof. Thanks |
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Post by westerndidi on Apr 3, 2015 12:03:35 GMT 7
wow, thats a great insight oldman :-) I don't believe that any industry is recession proof. We are all hit during the recession... just that some industries may be less impacted than others. Many of the listed healthcare companies still depend on foreigners to use their services. When the recession hits, medical tourism will also be hit. But of course, the sick locally, still needs to be treated and if they are covered by medical insurance, they will continue to use the services of the healthcare companies. Many of the larger listed healthcare companies should still remain quite profitable during a recession..... but of course, less so than during the good times. As for the smaller players, I will not be so optimistic. Dear shifus, May I know what are your opinions on medicial shares? I'm told this industry is recession proof. Thanks |
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Post by roberto on Apr 3, 2015 23:37:38 GMT 7
Like in any industry, there will be the garbage and the gems. I'm generally bullish about healthcare in SG, but cautious about choosing individual companies. For me, a garbage example would be Healthway Medical, although some may consider it undervalued and interesting at the moment. I like Raffles Medical but it's way to expensive now. Hmm maybe Pacific Healthcare is more garbage...
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Post by westerndidi on Apr 4, 2015 0:15:44 GMT 7
Like in any industry, there will be the garbage and the gems. I'm generally bullish about healthcare in SG, but cautious about choosing individual companies. For me, a garbage example would be Healthway Medical, although some may consider it undervalued and interesting at the moment. I like Raffles Medical but it's way to expensive now. Hmm maybe Pacific Healthcare is more garbage... Me too eyeing on Raffles Medical  But it seems to be an expensive stock. |
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Post by oldman on Apr 4, 2015 19:31:42 GMT 7
When everyone else thinks that healthcare stocks are defensive during a recession, you can bet that the stock will be chased upwards... ie, it may be a better time to sell than to buy. If you take a quick look at the stock chart..... in 2008 during the recession, the stock collapsed from $1.50 to 50cts..... yes, indirectly, I have answered your initial question. The key question with healthcare companies is whether the company was created for the doctors or the shareholders. If it was created for the doctors, then the doctors will be very well paid. If it was created for the shareholders, then the doctors are unlikely to be well paid in terms of salaries, but they can be compensated in terms of stocks. When $1 of profit can be translated to $15 of share value, you can understand why some healthcare stocks are valued so highly but really, one has to sit back and think hard. Yes, you have to read in between the lines. Hence, though I have a medical background, I will not rush to invest in healthcare related companies.   Like in any industry, there will be the garbage and the gems. I'm generally bullish about healthcare in SG, but cautious about choosing individual companies. For me, a garbage example would be Healthway Medical, although some may consider it undervalued and interesting at the moment. I like Raffles Medical but it's way to expensive now. Hmm maybe Pacific Healthcare is more garbage... Me too eyeing on Raffles Medical But it seems to be an expensive stock. |
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Post by zuolun on Apr 5, 2015 9:12:28 GMT 7
oldman, Chartwise, RMG hit record high @ S$4.07 in end-Sep 2014, the last leg of the impulsive Wave-5 and the monthly chart remains toppish at current price level. RMG's share price could suddenly collapse with low volatility, exactly the same magnitude and direction as MTQ, which peaked in end-July / early Aug 2014. The same goes for ComfortDelgro, which remains toppish and tightly traded / strongly controlled by Algo traders at current price level. “The crowd always loses because the crowd is always wrong. It is wrong because it behaves normally.” ~ Fred C. KellyRMG (Jan 2004 to 25 Sep 2014) — The Elliott Wave Pattern MTQ (monthly) — (Apr 2005 to 31 July 2014) ComfortDelgro (Oct 2008 to 30 Sep 2014 — The Elliott Wave Pattern When everyone else thinks that healthcare stocks are defensive during a recession, you can bet that the stock will be chased upwards... ie, it may be a better time to sell than to buy. If you take a quick look at the stock chart..... in 2008 during the recession, the stock collapsed from $1.50 to 50cts..... yes, indirectly, I have answered your initial question. The key question with healthcare companies is whether the company was created for the doctors or the shareholders. If it was created for the doctors, then the doctors will be very well paid. If it was created for the shareholders, then the doctors are unlikely to be well paid in terms of salaries, but they can be compensated in terms of stocks. When $1 of profit can be translated to $15 of share value, you can understand why some healthcare stocks are valued so highly but really, one has to sit back and think hard. Yes, you have to read in between the lines. Hence, though I have a medical background, I will not rush to invest in healthcare related companies. Me too eyeing on Raffles Medical But it seems to be an expensive stock.
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Post by zuolun on Jun 22, 2015 9:00:36 GMT 7
Are singapore listed healthcare stocks overpriced? ~ 21 Jun 2015 When everyone else thinks that healthcare stocks are defensive during a recession, you can bet that the stock will be chased upwards... ie, it may be a better time to sell than to buy. If you take a quick look at the stock chart..... in 2008 during the recession, the stock collapsed from $1.50 to 50cts..... yes, indirectly, I have answered your initial question. The key question with healthcare companies is whether the company was created for the doctors or the shareholders. If it was created for the doctors, then the doctors will be very well paid. If it was created for the shareholders, then the doctors are unlikely to be well paid in terms of salaries, but they can be compensated in terms of stocks. When $1 of profit can be translated to $15 of share value, you can understand why some healthcare stocks are valued so highly but really, one has to sit back and think hard. Yes, you have to read in between the lines. Hence, though I have a medical background, I will not rush to invest in healthcare related companies.
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But it seems to be an expensive stock. 
