Medibank Private Share Offer..

rubbish, why should they give for free.

Its not a co-op. Its government owned.

Did the government give CBA for free?????

Originally Medibank was set up so that the funds it held would be for the benefit of members, it was not a government owned corporation in the sense that Qantas and Commonwealth Bank were. It took government legislation to take control of those assets, corporatised Medibank and became the sole shareholder for the sum of $100 and started collecting dividends. Some folks are still bitter about that move, regardless of whether it was legal or not.
 
I dont know the details of their financial position 15 years ago but i assume an insurance company would have a fairly large provision for potential payouts sitting as a liability plus an amount booked as income in advance for annual premiums already recieved,etc . Just suggesting that posting just the assets kind of skews the argument.
 
I dont know the details of their financial position 15 years ago but i assume an insurance company would have a fairly large provision for potential payouts sitting as a liability plus an amount booked as income in advance for annual premiums already recieved,etc . Just suggesting that posting just the assets kind of skews the argument.

From memory, medibank had around $300mil in liabilities at the time Govco took it over, but can't find the reference, perhaps someone else can?
 
Generally speaking, the big index funds will need to get to market weight with any large company, so they must buy it.

They are unlikely to be allocated sufficient, so they'll have to buy from the mums 'n dads. Based on that, the price is likely to rise when it lists.
 
That's the way I see it also,the big high end funds would already be looking
maybe they can buy combined over 80% and if one can study how most of the large floats have gone over the past 25 years in Australia which anyone can through the shareholders information on the top twenty largest shareholders,,or bond holders ,,it happens that way in every float..imho..
 
That's the way I see it also,the big high end funds would already be looking
maybe they can buy combined over 80% and if one can study how most of the large floats have gone over the past 25 years in Australia which anyone can through the shareholders information on the top twenty largest shareholders,,or bond holders ,,it happens that way in every float..imho..

willair are you able to explain that a bit more?.. Would that be a good thing short/long term?

I wasn't able to find information on how the large floats have gone over the past 25 years in Australia, but keen to read up if you know where to find?

thanks
 
Prospectus?

Just received the prospectus and to be honest I have very little idea what I'm looking at, any opinions from those more well versed in share speak?
 
Just received the prospectus and to be honest I have very little idea what I'm looking at, any opinions from those more well versed in share speak?

Yeah I would like to hear the guys thoughts as well Bhp19.

I'm skeptical about it with all my research, but no expert thats why I would like to know thoughts?
 
Just received the prospectus and to be honest I have very little idea what I'm looking at, any opinions from those more well versed in share speak?

had a very very quick look at it.
Doesn't seem to possess the same long term opportunity as CBA when it floated.

A PE of up to 21 on a slow growth company doesn't seem good.

The icing might be future cost cutting (government entity to private entity efficiency).

On the lowest pricing it doesn't come anywhere remotely close to basic return on equity to book value (although again if they can achieve significant future efficiencies, then this equation might start to balance, but given the inbalance is around 50% this is a big future catch up).

I need to do more work, but it looks more of a good trading opportunity (for the reasons Keith mentioned above) than a long term buy and hold.
 
Medibank is huge in VIC and QLD but scope to increase market share in NSW and WA. Also scope to get into other forms of insurance like life insurance.

Its has a decent cash reserve and I reckon the government will want to see this a success so it will price it well so investors should have some short term wins. The government is also haemorrhaging on free health care so longer term they would push people to take on private health insurance.

For those reasons I'm going to add it to my portfolio.
 
Thank Shahin. I am still reading the prospectus and I'll wait to hear what some other experts have to say. PE of up to 21 seems a bit high? Thoughts anyone?
 
I have not had the time to have a look over the "Prospectus" yet,but I did read somewhere that depending on the entry unit price the pe range was above 20,but if the units go on offer at a lower range it will be a different story,anyone that signed up prior from what I read can apply for quarter of a mill units,if one does the maths on that number entry-exit costs taxes brokers accountants costs on short term timeframes might do ok in the start up phase,might even like the early days of Telstra,who knows..imho..
 
Willair, how long is the start up phase--weeks, months?

Sometimes the first few days,a lot of investors will take up this offer in my opinion ,and was talking to a broker yesterday and they think it may do well,or in her own one line joke"I was not around when the wheel was invented but this may gain traction"..imho..
 
Just read this article ( https://au.news.yahoo.com/a/2530907...-whether-it-is-a-value-investment/?source=wan ) online while trying to find out some more info/professional opinions on the float and was astounded at this statement, "Investors will not know what the final price is until the big institutions buy their stakes after the retail offer has closed.".

Now I have very little experience with shares and IPO's so can someone tell me if this is common? Am I understanding correctly that you as a potential future shareholder will be applying to buy shares you don't know the price of?

Thanks.
 
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