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