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Hi Peter,
NIB reported today and being a long term share holder I was initially happy. Profit up, dividend up but what about the share price? Down thirty six cents. There wasn’t a high turnover but a lot of small sales up to three thousand shares. What’s going on? Is somebody shorting these shares?
A: While NIB reported a record result, they warned about tougher conditions ahead saying: “soft market conditions likely to continue into FY17”. Guidance for next year was not that much higher than this year’s profit – range of $130m to $140m compared with $132m.
I think the outlook for both Medibank and NIB will be more challenging going forward. Very hard to repeat the same increase in margin, and the Govt will be under pressure not approve such large increases in premiums.
Put it down to profit-taking – I think both these stocks have seen their highs for the time being.
