Icarus Signal New Entries For Today

This story features RAMSAY HEALTH CARE LIMITED, and other companies. For more info SHARE ANALYSIS: RHC

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

One of the stocks that has increasingly been "talked up" recently is private hospital operator Ramsay Health Care ((RHC)) and the shares have (non-surprisingly) again entered the group of stocks approaching consensus price target. Ever since securities analysts re-rated the company (and their targets) in late 2010-early 2011 the shares have remained close to target, but it must be said that same target -on balance- has acted as a lid on the share price. Investors should note the underlying trend appears to be up, still, but not at a speed that would suggest gigantic investment returns should open up anytime soon.

The shares are trading at a lofty Price-Earnings multiple in excess of 17 and the implied dividend yield is below market for both FY11 and FY12. The positive news is that the shares have essentially remained unchanged (on balance) over the first five months of this year and that can be taken as a positive as the broader trend has been down.

Three other stocks that joined Ramsay in entering the group of companies approaching targets after Friday's price action, do so because of weakening share prices. These are Catalpa ((CAH)), Australian Pipeline Trust ((APA)) and ConnectEast ((CEU)). Four others joined Ramsay on the back of strength: Goodman Fielder ((GFF)), Goodman Group ((GMG)), Medusa Mining ((MML)) and Centrebet ((CIL)). Note Medusa is only covered by two stockbrokers and they seem in heavy disagreement. Centrebet is in play and likely to disappear from the share market shortly.

Wotif.com ((WTF)), Walter Diversified ((WDS)), Warrnambool Cheese ((WCB)) and Lycopodium ((LYL)) continue jojo-ing between stocks trading above target and those trading close below it. Right now, they're again in the first group. Heavily punished life sciences hopeful Pharmaxis ((PXS)) also joins those in the vicinity of targets as stockbrokers adjust their numbers post the unexpected European rejection. The share price preceded these moves.

Dart Energy ((DTE)) has joined the Bottom 50 thanks to an initiation of coverage by Deutsche Bank; another energy stock trading significantly below intrinsic value (at least according to Deutsche). Investors should note these heavy discounts do not always translate into similarly heavy returns.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 CAH $ 1.75 $ 1.75 0.00% 2 APA $ 4.31 $ 4.31 0.07% 3 CEU $ 0.48 $ 0.48 0.42% 4 CIL $ 1.95 $ 1.97 0.77% 5 MML $ 8.20 $ 8.40 2.44% 6 GFF $ 1.02 $ 1.05 2.45% 7 GMG $ 0.74 $ 0.75 2.59% 8 RHC $ 18.25 $ 18.78 2.88%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 WTF $ 5.06 $ 5.02 – 0.71% 2 WDS $ 0.75 $ 0.74 – 2.00% 3 WCB $ 4.90 $ 4.75 – 3.06% 4 LYL $ 6.20 $ 5.98 – 3.55% 5 PXS $ 0.92 $ 0.86 – 6.20%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 DTE $ 0.73 $ 1.20 65.52% 2 JET $ 0.78 $ 1.15 47.44%

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