Pro Medicus Limited develops and supplies proprietary software and IT solutions for large medical corporations and individual medical group practices. The Group's services include billing and management systems for diagnostic imaging providers, clinical reporting systems, and appointment booking services. Pro Medicus' e-mail system delivers encrypted diagnostic reports to group doctors.
PME has been a holding within the Value Strategy since September – it was bought right after it reported its FY19 profit numbers – and the stock has been one of the strategy’s biggest disappointments after a stock sell-down from the founder scared off investors. Irrespective of its share price performance, the underlying numbers ensured the company remained a holding within the strategy and today’s profit numbers were going to be the determinant on whether the stock remained a holding going forward.
Fortunately, PME released a pleasing set of numbers which have supported a 6% jump in the stock today. PME is now actually roughly 35% above its December lows so we have seen a significant re-rating of the stock, and the hope now is that with a solid set of numbers in the minds of investors we may continue to see the stock regain its previous losses.
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