Podcast: An undiscovered healthcare gem?

Simon Shares

Ascendis (JSE code: ASC) lenders are flexing their muscle. Back in February L1 Health, Blantyre bought enough debt to be able to block any asset sales and with over R7billion in debt Ascendis desperately needs to sell their European crown jewels. There is now a forbearance agreement in place until the end of April by when the company needs to have sorted out their debt. A rights issue is not an option at current prices so a debt for asset swap with the lenders? This will maybe resolve the debt issue, but then what does that leave Ascendis?
Renergen* (JSE code: REN) finds a bunch more gas they did not expect to find.

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Growthpoint (JSE code: GRT) office vacancies at 18%. Lots of concern about malls as we’re over traded and online shopping. The latter is a very long-term issue, the former will see some die. But office is the real concern.
Solid AfroCentric (JSE code: ACT) results. Everybody (well many) love Discovery* (JSE code: DSY) yet here is a pure health stock with great potential, cheap valuation and they consider NHI to actually be something that would further benefit the company.
Very good Metrofile* (JSE code: MFL) results. Debt is going faster than expected, business is solid and the anon bidder has exited the building leaving only the one stuck in Australia. They should be able to easily do 30c HEPS for the full year putting then on a forward PE of under 10x. This set of results they only paid out half of HEPS as a dividend, but this should increase from next financial year as debt becomes way smaller.
MTN (JSE code: MTN) finally pricing as a utility.

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