Is it time to book a profit on Medibank Private Ltd?

While the S&P/ASX 200 Index (Index:^AXJO) (ASX:XJO) is taking a pummelling, Medibank Private Ltd (ASX:MPL) is scaling new heights.

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Medibank Private Ltd (ASX: MPL) has managed to avoid the carnage being unleashed on the broader Australian stock market with the freshly-listed health insurer today achieving a new high.

While individual investors managed to pick the stock up at $2.00 exactly three weeks ago, the stock has today reached $2.31, reflecting a 15.5% paper profit. That’s a $1,550 profit if you managed to get your hands on $10,000 worth of shares.

Meanwhile, investors who chose not to participate in the IPO have more than likely watched their portfolios drop in value. Since Medibank’s IPO on 25 November, the benchmark S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has declined 3.8% with those investors exposed to the energy sector impacted the most.

Although Medibank could have a bright future ahead of it (particularly if it can get its costs and margins under control), the stock appears to be trading at, or perhaps slightly above fair value. Investors wanting to make market-smashing returns over the coming years should therefore consider some of the other incredible investment opportunities currently presenting themselves.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

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