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1.Market Observations, 8.Was Sticky

5 Sept 2016 (AFR) – Aged care operators (Estia, Regis and Japara) downgraded after government fee concerns

[COMMENT: I cannot help but comment on this. For some time now, many investors have held the “opinion” that investing in aged care is a sure-fire winner – because of the growth in demand. However, it is very possible that many investors who have stuck to this opinion-based investing approach have just lost a lot of money, with this news announcement this week. However, some of those investors will have employed a Stop Loss approach, and would have sold down their holding when they saw the downtrend get under way a few months ago. Any investors who did not do this – please learn a lesson. It is not wise to fall in loce with a “story”, or a stock, or a sector. All it takes is a quick swich of the government’s legislative pen to change the whole game.]

(5 September 2016, AFR, p30, by Matthew Cranston)

‘Aged care operators and developers, including troubled company Estia Health, have been downgraded by CLSA and Bank of America Merrill Lynch following an update from the federal government on guidelines for charging additional private fees in residential aged care.  On Friday the federal government clarified what fees aged care operators could charge their residents and gave examples of fees that were not permitted, such as…’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

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About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

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