Is Medibank Private a buy right now?

Co-founder of the Switzer Report
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I like boring stocks. And one of the most boring must be Medibank Private (ASX: MPL). Often thought of as a healthcare stock rather than a financial company involved in the health industry, it is boring because it is not volatile, doesn’t move around much and seems to have distinct ‘buy’ and ‘sell’ zones. Right now, it is getting back towards the buy zone.

Since its IPO in very late 2014 at a price of $2.15 (retail shareholders paid $2.00), it has largely traded between $2.50 and $3.00, but with an upward bias (see chart below). Over a 5 year period, this is a very tight range. It went for a run last year when Bill Shorten was defeated and the RBA cut interest rates, up to a high of $3.62 in June and again in August, but it has largely been easing lower ever since. On Friday, it closed at $2.91.

Medibank – 2/15 to 2/2020

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