Member Info for sudnal

Hopefully positive...
https://www.thisismoney.co.uk/money/news/article-8032793/Billionaire-takes-stake-hospital-operator-NMC-Health.html

The problem here is the pledged stock and when the margin calls will be initiated by the lenders to sell in the open market.

Jasmine group is buying shares on behalf of The Clermont Group. The Clermont Group is an international business group with its headquarters in Singapore. Clermont builds industry-leading businesses in healthcare, financial services and aerospace. These businesses employ over 6,000 people around the world.

Business doing good on fundamentals, Still 6-8% shorts to close, $200mn share buy back yet to fully commence, Freeh report due - someone will realise value here and take a major stake. Patience will be rewarded IMO.

We have only 2 weeks before the results are out, which means that report should drop anytime. Im ignoring the noise and holding..Let the market decide the next course of action.

The risk we need to factor is the number of shares pledged (owned by Director Butti) and when does banks have the right to sell them...If banks decide to sell them depending on the margin call, then we have some more downside, i would think, but im holding tight..

Closed at £9.262

Think £8.5 might end up being the new bottom forever..

Things hotting up.

Krupa Global Investments (KGI) as a NMC Health shareholder has been talking to industry experts and strategic investors in healthcare from CEE region about possibilities to purchase significant stake in NMC Health.

Krupa Global Investments (KGI) held talks with strong private equity groups based in Prague to take strategic stake in NMC Health after recent sell-off. Chairman of KGI Pavol Krupa has been talking for few days with industry experts and private equity groups from Prague, Czech Republic regarding taking strategic stake in NMC Health or securing financing for NMC Health founder Mr. B.R. Shetty. These groups have tens of billions in assets under management and has dominant position in several health care businesses in CEE region.

”We see shares of NMC Health significantly undervalued after recent sell-off and our strategic partners in healthcare sector share our view. This is great opportunity for us and our partners to take strategic stake in biggest healthcare provider in Middle East. We have informed NMC management that we also have interest to provide financing for Mr. Shetty’s ambition to get NMC under his control, if necessary,” said Pavol Krupa, chairman of KGI.

Chairman of KGI Pavol Krupa won’t specify names of these groups for the moment as talks are ongoing. NMC management has been informed about recent talks.

Think the BOD will be working extremely hard over this weekend, given its working days in middle east to unease fears and put some of the uncertainty surrounding the share to bed. Keep faith, return back after 3 months and you will be handsomely rewarded IMO. I have started buying this from £16 and have averaged a few times, now my average stands at £10.62, although i have paper losses im staying put as i feel this is undervalued and im sure things will change in time.

Such level of manipulation is it allowed on FTSE100 stock

Its holiday today in middle east, but they work tomorrow and day after and hopefully they can speed up the report and ensure LTHs are protected through this mess.

Think this is abhorrent behaviour and fraudulent activities by Hedge funds colluding with Muddy waters. Not sure who and how this can stop..

There might be a major holder who might be selling in the background..

Unbelievable share price action testing the nerves of PIs looking for quick benefit. Im staying put and let the market decide the next course of action, sanity will return..

IMO - Given 56% of shares are out on loan, the market (shorters) are testing where the banks who have lent money starts selling those shares on margin calls, hence the reason for it to be brought down. Dont think its the fundamentals.

I have also just seen an article on FT, that BR Shetty has discussed a strategy with Abu Dhabi government to buyout 24% stake owned by Emiratis or to bring in new investors (Apollo being quoted) and he would take an active role in the org.

Thank you fundamentalanalysis - just my opinions, not ramping. I have also just seen an article on FT, that BR Shetty has discussed a strategy with Abu Dhabi government to buyout 24% stake owned by Emiratis or to bring in new investors and he would take an active role in the org. At that age, it is pride and reputation for Mr BR Shetty and he has grown this into a reputable organisation after long and cannot let his baby (the company) beaten up by Muddy Waters with mostly false allegations day in day out..Let's wait and this negative sentiment cant continue forever and tide will change..

I have gone through the Muddy waters report once again and the rebuttal from NMC. My views:
Since the report has been submitted - The price has reduced from £25 to £9.7 today, a staggering 61.5%
Even if all claims made by Muddy waters are right, i do not think the share price warrants such a big drop i suspect that some might be true, i dont think any company for that matter anywhere in the world will come clean if an independent committee does an audit - there will surely be some gaps
Current PE is 9.85, based on last year 2018 financials, other companies in the same segment in the same industry currently at 22 times (e.g. Mediclinic trades at 22 X PE)
Several analysts are considering NMC shares as deeply undervalued (JP Morgan with target price 3,360 GBP, Barclays with target price 4,275GBP, Krupa Global investments think fair value is £20)
I dont think the company is going bankrupt, just based on those allegations
Company has confirmed that they will meet the guidance for the last year as mentioned previously
With revenues increasing, expansion plans intact, debt reducing, profits increasing think the business is doing well IMO.
Based on the facts it appears undervalued and with time will correct - ignore daily fluctuations

£18

Operating profit sank 41.2 per cent year on year to $221.7m (£170.9m) for the 12 months to the end of October.

Revenue also tumbled 29.6 per cent to $3.35bn after the technology company blamed Brexit chaos for customers delaying IT purchases. Sales fell 7.3 per cent on a constant currency basis, and core earnings dropped 2.6 per cent to $1.35bn.

Net debt climbed by around $80m to $4.34bn, 3.2 times Micro Focus’ earnings before interest, tax, depreciation and amortisation (Ebitda).

Basic earnings per share plummeted 103 per cent from $181.91 in 2018 to a loss of $4.87 per share.

Takeover by Opentext is the best option IMO rather than going for big organic growth.

Micro Focus paid a higher total dividend per share of $1.166, up from last year’s $1.08.

This has further to fall IMO...