Today, the Pro Medicus Limited (ASX: PME) share price got taken to the cleaners. It fell 8% today.
PME Share Price
About Pro Medicus
Pro Medicus is a Melbourne-based software owner and developer, licensing products to large US hospitals and Australian radiology clinics. The company has offices in Richmond, Victoria; Berlin, Germany; and in the United States. Its two primary lines of business are Visage imaging software, and Visage RIS — an all-in-one software service for clinics to manage their business.
In the following video taken last year, I explained the Pro Medicus business in detail and why we bought it for our Rask Invest investing subscription service (we recommended it below $10 per share).
https://youtu.be/0SWl9xBsRNw
Time To Sell?
There was no company-specific news released by Pro Medicus today. It seems to have been caught up in the broader market sell-off, much like Afterpay Touch Group Ltd (ASX: APT) and Appen Limited (ASX: APX).
While no-one likes to see their shares fall, we issued a partial sell-down of our Pro Medicus position a few months ago due to valuation.
Indeed, despite the huge addressable market for its Visage 7 and Vendor Neutral Archive (VNA) platform, particularly in the USA, we couldn’t reasonably justify a price over $11 per share for Pro Medicus so we decided to sell some of our position.
We’re happy to hold part of our original position because we think Pro Medicus is an exceptionally well-run business with aligned management and a great product in a large market. But to be clear: we’re not buyers of the shares today.
Zooming out a little bit, while you may think the opportunity for big long-term returns has passed you by, we here at Rask Invest believe hard-working stock market investors will have plenty of other opportunities to look forward to over the next 10 years. You just have to remain patient and look in the right places!
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Disclosure: At the time of writing, Owen owns shares of Pro Medicus.
