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TMFHelical (98.98)

Healthcare Providers

Recs

4

August 20, 2008 – Comments (7)

I've been on the fence on whether to add healthcare providers to this CAPS port.  They have place in it and I should make a yay or nay call, but I've shied away due to the uncertainty surrounding them.  The election cycle and what healthcare will look like going forward is anyone's guess, but some form of change is likely.

They are cheap now due to this uncertainty, that much is certain (LOL).  They can certainly generate cash under the status quo.  Here, let these guys explain. 

 

 

So, despite missing at least a local low, I'll go thumbs up on a select few like United Health, Wellpoint, and Coventry.  Then watch the news closely. 

 

TMFHelical 

7 Comments – Post Your Own

#1) On August 20, 2008 at 1:09 PM, TDRH (99.67) wrote:

I think it is, as you say,  the election that is driving down the share price.   Reform seems to be in both platforms, though I believe if Obama wins the market will kneejerk sell off those companies.   Then there may be a serious buying opportunity. 

 Whomever is elected president is going to have a lot of issues to confront, and most likely will be run out of office in four years due to the economic cycle.  My bet would be that they accomplish very little reform.

Disclosure I own UNH, will be looking to buy more.

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#2) On August 20, 2008 at 1:39 PM, jsthwrth (40.42) wrote:

Helical, how do you feel about Healthcare REITs? They stand to have a steady cash stream as long as hospitals are still in operation.

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#3) On August 20, 2008 at 2:31 PM, DemonDoug (81.27) wrote:

best play on healthcare IMO would be to go with suppliers, such as KMB, JNJ, CAH, etc.  I think there is some company out there that specializes in IV tube lines - these are great businesses to be in.  You want to find them on the dips of course.

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#4) On August 20, 2008 at 4:01 PM, TMFHelical (98.98) wrote:

jsthwrth,

In general I like heathcare REITs and feel they make nice portfolio cornerstones that should deliver over the next 20 years.  But......they all seem to be at all time or 52 week highs right now, so I would wait for a better entry.  I may red thumb a few in CAPS when interest rates start to rise again, but don't expect that will be soon.

I own HCN and recently reduced my holding (just over 10 days ago, so nice timing on the question).  I hope to buy it back in the mid to low 40s but may be waiting for some time.  I have a nice >25% IRR over 3 plus years with HCN,  I had been adding to my position at yields > 7% (last addition in 7/07), but reducing my position of late. 

TMFHelical

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#5) On August 20, 2008 at 4:04 PM, TMFHelical (98.98) wrote:

DemonDoug

Agreed.  Companies like that make up a good chunk of my CAPS port.

CAH, TMO, WST, MILL, CVD, LH, VTIV, etc.  I'm waiting for some favorites to get cheaper (SIAL, WAT).

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#6) On August 20, 2008 at 4:21 PM, anchak (99.85) wrote:

I also personally agree....This is one sector to watch...if you place your bets right can be extremely rewarding.

Thanks for the writeup 

 

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#7) On August 30, 2008 at 1:47 PM, FleaBagger (28.87) wrote:

What happened to the Zz? Does the change symbolize an awakening? (Just kidding.)

But seriously, why the change?

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