Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
There is only so far the elastic here can be stretched before a feeding frenzy starts and institutions scramble to get on board. When the outlook of the big divi payers starts to falter, as it will, the underlying growth prospects and value inherent here will be blindingly obvious. Great opportunities don't come that often and this one is staring folk in the face, just do the research and draw your own conclusions.
Covid admission modelling for the NHS showed figures up to 12 times those currently being experienced and also 20% of patients on the waiting lists for hip and knee replacements are electing to go private. That's just in the UK as surgical procedures continue to ramp up. Given that the USA is the major market for S&N with the RoW increasing substantially, the November update should finally put this value erosion to bed.
I've shifted 60% of my pf into S&N as a hedge against any market correction since it should hold better and rerate faster given it's current oversold position. That isn't to say that it couldn't drop further with a substantial market drop but I'm comfortable with this exposure pending clarification of 3rd quarter results on Nov 4th. I take a medium term view, but it could easily sprint upwards to £16-18 on positive progress. Whatever happens the pent up demand is increasing weekly and the prospect of the superstar production plant coming on stream in Malaysia in the medium term adds confidence. It is a very specialist field in which SN operates with excellent provenance, massive consumer trust, v high barrier to entry and unique skills and IP.
S&N will be a major gainer next year as the huge backlog unwinds. Demand is escalating week on week with many patients opting to go private. It is certainly a recession-proof FTSE100 stock taking a contrarian Covid view. Time the market stopped looking so myopically and took a 6 month PLUS stance.
Easily achievable on volume, £16 is clearly the first hurdle in what I'm convinced will be a rapid ascent as sentiment has turned. The underlying strengths of S&N should then propel it through £17 where it should take a breather and form a new base as the positive (expected) trading update on Nov 4th sinks in and brokers upgrade on future prospects. Still plenty of scope to get on board. Early days of the rerate.
$34.45 looks like it's bottomed on NYSE also....
Time will tell but there's a blue horizon coming into view for the first time in a month. October tomoro should see first signs of long awaited upswing....
Can't call the exact bottom but I'm sure we're very very close if not there now. Locked, loaded and happy with a £13.30 average.....Happy to wait and have a price target of £16 then £18 as demand accelerates. Not a share I'm going to lose sleep over as the pent up demand is Huge!.
Well that's me locked and loaded up with S&N...
final tranche purchased today giving me an excellent average price to make the most of the upswing when it comes. October lead up to t/u on Nov 4th and increasing traction in surgery gives me confidence. Solid share come what may in the economy. Happy to hold.
T/u is scheduled for 4th Nov but I would appreciate a pre-scheduled comment by the company as happened last year where it was brought forward to Oct 1st. I certainly agree that a variety of factors are now playing into the hands of Smith and Nephew providing the complete opposite of a 'perfect storm'.....golden window?
S&N is also being totally discounted on this front. Add that to increasingly active surgical activity around the globe as covid effect diminishes and it really does look like a hidden gem in full view! Patience is being stretched but the bounce-back should be very pronounced indeed.....
How on earth can the market be ignoring the near to medium term value here??? All the indicators have turned positive for surgery ramp-ups, more patients electing to go private plus a huge Malaysian factory due on line next year....FFS..
Cannot get my head round the fall to this level in a near recession proof company ?????
Zimmer reported much improved surgery turnover in August update so should be having traction for S&N. They confirmed update will be announced on 4th Nov so should see uptick as we go forward, plus the xd this week. From Zimmer...
"Our performance in the second quarter improved meaningfully from the first quarter 2021 across all regions and product categories as recovery from the global pandemic continued to take hold. While we anticipate some ongoing COVID-19 pressure, we expect continued improvement in procedure volume recovery through the second half of 2021,"
I should have qualified that I see a £16-18 target within the next 12 months ie by Sept 22 on the basis of the huge pent up demand and surfeit of cash which is being used to fund private operations in non covid centres. Huge upside imo.
Ditto, Smith & Nephew is 40% of my p/f as I've taken profits elsewhere. Average is now 13.45 which I'm comfortable with for all the reasons I've mentioned here. Ex d at end month and happy to hold.....we have parallel aims here. Well oversold with upturn and high side looking strong as ops scale up. Although tabled for Nov 4th I'm expecting a good t/u around Oct 1st as explained in previous posts.