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IBDvalueinvestin (98.91)

Did OBAMA's health reform cause healthcare providers to become oversold?



June 17, 2009 – Comments (4) | RELATED TICKERS: KND

I mean just look at KND selling $11+ when its book value is $24+

Its selling like its going to provide care for Free LMAO.

4 Comments – Post Your Own

#1) On June 17, 2009 at 1:56 PM, catoismymotor (< 20) wrote:

I think it did not help things. So, yes.

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#2) On June 17, 2009 at 2:18 PM, anticitrade (99.15) wrote:

Absolutely.  My fundamental model is still recommending a disproportionately high amount of them..  Specifically:

Ticker Industry|           MCAP| Price Curr.|Price Fund. |Anticip. Return
AMED  Home Health           $706M  $30.25    $67.75       124%
CVH   Managed Care          $1244M $17.11    $37.11       117%
LNCR  Home Health           $1476M $20.57    $38.67       88%
GSIG  Medical Equipment     $39M   $1.00     $1.87        87%
AFAM  Home Health           $123M  $26.74    $47.09       76%
KNDL  Research Services     $227M  $13.40    $23.06       72%
GTIV  Home Health           $380M  $14.98    $25.49       70%
SUNH  Assisted Living       $340M  $8.95     $14.83       66%
NOVA  Healthcare Physicians $44M   $3.66     $5.84        60%
AOB   Biotechnology         $281M  $4.98     $7.81        57%
AHCI  Home Health           $54M   $1.93     $3.02        56%
ENDP  Drugs                 $1916M $17.41    $27.15       56%

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#3) On June 17, 2009 at 10:04 PM, XMFHelical (97.63) wrote:

They could well be oversold, but I've thought that before and been wrong.  Public plan choice is coming so there will be a new competitive landscape.  I don't know exactly when, but it will arrive.  Can KND compete with a massive government enterprise offering a similar product without the burden of shareholders to anwer too?  Will taxpayers demand the unit be profitable (c'mon, sadly we won't).  I still wouldn't touch the sector, and historical metrics are meaningless right now.



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#4) On June 17, 2009 at 10:08 PM, anticitrade (99.15) wrote:

I should add that I agree with TMFHelical.  The reason that so many of these healthcare stocks are undervalued right now from a fundamental perspective is the President OBAMA factor.

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