The Medibank bonanza goes live tomorrow. Institutions have bid up the price to $2.15 but retail investors only had to pay $2.
Switzer Super Expert Paul Rickard still feels that it is an expensive stock.
“If it lists around $2.20 – that puts it on a multiple of 23.5 – at $2.25, it is on a multiple of 24.0. I am planning to sell my small holdings – there is better value elsewhere,” he says.