CMC Markets’ Chief Market Strategist, Michael McCarthy, likes Ramsay Health Care (RHC) and, while admitting this may seem a strange call at the beginning of a Commission of Inquiry into aged care, he believes RHC’s international exposures and generally higher standards will see it outperform its peers. “Currently trading near its lowest PE in six years, RHC has recently moved up and out of its recent trading range. More cautious investors may wait for a break up through $60,” he says.
With statistics published by Sydney Airports last week showing that domestic passenger numbers fell in November and international passenger growth slowed, Michael doesn’t like Qantas (QAN). “Combined with exposure to rising oil prices and a share price trading near recent highs around $6.20, in my view it’s time to bail out,’ he says.
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