RE:when will biohealth sector return to favour?sunshine7 wrote: Cxr not the only company not being rewarded with historically average multiples. Remember when growing and profitable business got multiples of 15x and more? Heck, the average stock, good and bad, is higher than that! Cxr trading at less than 4x. Has room to go if the shorts start to exit.
Probably not before this fall. We'll have to see how the presidential candidates in the US adress the health debate. Although, with the high probability of no interest rate hikes from the Fed, we could see an increase in the overall US markets including healthcare. Add to that the political madness coming from the UK and it's even more likely.
For CXR, I acutally believe the current context is good for business in the UK. Why ? Simply because the political climate is so off right now that absolutely nothing in the sense of healthcare policy can and will be done in the near future. I mean, they're absolutely at a loss of direction right now and they have much bigger concerns to look out for than the NHS. I don't see this changing until 2017.
Anyway, just wait and hold. Investors will get back in CXR when Q2 is over and results are out in August. I expect it to be a good one.GL.