Raffles Medical Group

Raffles Medical Group, mainly in charge of Raffles Hotel and the various Raffles Medical Clinics you see in shopping malls and heartlands announced it's financial results on 16th Feb.

This company saw a rose in both revenues and profit before tax of 9.9% and 10.3% respectively. Sounds awesome right?? Furthermore, Raffles Medical has cash on hand averaging $150m and do you know what's the best reason to buy this company? It has zero gearing / leverage / debt. Yes, it does not have any debt.

One of the major factor affecting results of companies is the amount of debt they have. The larger the debt, the longer they take to repay, the higher the interest paid, the lower the returns to shareholders.

Based on Raffles Medical's results, everyone would have expected this counter to skyrocket right? Wrong! After announcing it's results before market opened, Raffles Medical Group closed 1.5% lower, decreasing 6 cents closing at $4.04.

That being said, Raffles Medical has been on a long term uptrend ever since it listed. I suppose investors are starting to go slow on this counter if it doesn't come up with more plans for the future.

Watch this blog for the other 2 counters!

Signing off~
Billy