June 9, 2014 Benchmark Investing (BI) Selections
There is just one stock to review this week and I am not making any changes to my portfolio at this time.
This week’s candidates:
THC (Tenet Healthcare) http://caps.fool.com/Ticker/THC.aspx – The long-term prospects for THC seem bright, despite the short-term implications of its costly purchase of Vanguard Health and the heightened costs from the Affordable Care act. Together these two events have really taken a toll on its earnings. Still, THC should have a bright future considering the evolving healthcare marketplace and its strengthened position in the marketplace. All this considered, the BI pricing tool would indicate that we should take our profits and close this position. However, despite this recommendation, if its price were just 46 cents lower or the BI HiPrice 46 cents greater we would still be in a Hold pattern. As such, I will continue to Hold for the time being, but place this stock on a watch and wait. Decision: Hold
Every week a refresh of key financial data, stock prices, and economic data are evaluated. This information is analyzed using Kenneth Lee's selection process as described in “Trouncing the Dow". Individual stocks are selected based on their relative valuation compared to their own historical valuation metrics. The scientific based approach allow for a superior “rules-based” decision making to buy and sell stocks that has been proven to yield superior results over time.
Each week a broad set of stocks are considered to be bought, sold, or held as part of the process.
Tickers discussed this week: THC