$RGC is a possible undervalued healthcare firm.
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Posted On: 10/12/2022 11:24:26 AM
$RGC is a possible undervalued healthcare firm.
The Forbes mags' shares the below advantages of holding a healthcare "Defensive" Company Share.
"1. As defensive stocks, healthcare companies provide steady returns in any market. Because people will always need healthcare, the healthcare sector provides very steady, consistent returns that are uncorrelated with the overall direction of the stock market.
2. The U.S. healthcare sector is growing faster than the rest of the economy. Growth in the sector is being propelled by technological advances, an aging population and improving treatments for chronic diseases and conditions.
3. Healthcare spending in the U.S. is seeing strong, sustained growth. National health spending is projected to grow at an average annual rate of 5.4% through 2028, reaching $6.2 trillion and 19.7% of the country’s GDP."
Aside from having a favourable position as a "defensive" healthcare company, RGC's management and CEO has taken a more transparent approach to the company's investors.
- Upon the IPO, the Chairman’s loan of USD $3.25 million, was converted into ~342,000 common shares at the initial offering price of USD $9.50.
- Pledged to not draw salary and bonus of more than USD $1 until the Company reaches USD $1 billion market capitalization;
- Will not award share options for himself;
- Since the IPO, RGC’s Chairman and CEO has purchased over USD $5 million in common shares on the open market. Most recently, he purchased 49,010 shares (~ USD $1.1 million) between April 1 and May 16, 2022, bringing his ownership to 81% of outstanding shares (~10.5 million).
https://scr.zacks.com/news/news-details/2022/...fault.aspx
The Forbes mags' shares the below advantages of holding a healthcare "Defensive" Company Share.
"1. As defensive stocks, healthcare companies provide steady returns in any market. Because people will always need healthcare, the healthcare sector provides very steady, consistent returns that are uncorrelated with the overall direction of the stock market.
2. The U.S. healthcare sector is growing faster than the rest of the economy. Growth in the sector is being propelled by technological advances, an aging population and improving treatments for chronic diseases and conditions.
3. Healthcare spending in the U.S. is seeing strong, sustained growth. National health spending is projected to grow at an average annual rate of 5.4% through 2028, reaching $6.2 trillion and 19.7% of the country’s GDP."
Aside from having a favourable position as a "defensive" healthcare company, RGC's management and CEO has taken a more transparent approach to the company's investors.
- Upon the IPO, the Chairman’s loan of USD $3.25 million, was converted into ~342,000 common shares at the initial offering price of USD $9.50.
- Pledged to not draw salary and bonus of more than USD $1 until the Company reaches USD $1 billion market capitalization;
- Will not award share options for himself;
- Since the IPO, RGC’s Chairman and CEO has purchased over USD $5 million in common shares on the open market. Most recently, he purchased 49,010 shares (~ USD $1.1 million) between April 1 and May 16, 2022, bringing his ownership to 81% of outstanding shares (~10.5 million).
https://scr.zacks.com/news/news-details/2022/...fault.aspx
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