Sun Healthcare Group, Inc. (NASDAQ:SUNH)

CAPS Rating: 5 out of 5

The Company is a nationwide provider, through its subsidiaries, of long-term, sub-acute and related specialty healthcare services principally to the senior population in the United States.


Player Avatar stuinkc (43.28) Submitted: 9/10/2009 2:47:48 PM : Underperform Start Price: $8.73 SUNH Score: -6.52

Interestingly enough, this company cuts its 2009 outlook and the stock is up almost 10% in the past couple days. Yes, the baby boomers are aging and capacity is certain to rise, however, most of the profit margins on that increase is going to get squeezed down with cuts to medicare/medicaid. Like most other firms, they are trying to cut costs with workforce reduction which will look nice in the short term, however, changes to staffing in healthcare can result in decrease in trackable healthcare metrics such as falls, decubitis ulcers, infection rates and patient satisfaction which will not bode well with government regulatory agencies This stock is intially going to get a little pop but I just dont trust it enough to put my money in to it at this point in time with such high levels of debt and profit margins getting squeezed.

Report this Post 11 Replies
Member Avatar ayaghsizian (95.29) Submitted: 9/15/2009 7:03:47 PM
Recs: 0

I'm thinking like george from seinfeld. Since your score is under 20, if I invest the opposite of your advice I should do pretty well right?

SUNH is about as safe as it gets.

BTW, I'm only kidding with you.

Member Avatar greenwave3 (< 20) Submitted: 9/16/2009 7:58:07 PM
Recs: 0

Well, they cut their outlook, but even with reduced guidance, they are still trading below 10 times next year's earnings. Health care reform proponents have already assured that there will NOT be medicare/medicaid cuts.

Member Avatar BigFatBEAR (29.22) Submitted: 9/17/2009 1:31:27 PM
Recs: 0

Looks like bullishbabo green'ed this today. That's enough a vote of confidence for me, from this attractive valuation.

Member Avatar stuinkc (43.28) Submitted: 9/18/2009 3:47:14 PM
Recs: 0

lol, anytime a seinfeld reference can be worked in its a good day. watching those seinfeld reruns after the news and at bedtime still make me laugh.

Member Avatar stuinkc (43.28) Submitted: 9/24/2009 11:40:42 AM
Recs: 0

medicare cuts are still being discussed in the house

Member Avatar QwertyHero (< 20) Submitted: 9/30/2009 3:33:11 PM
Recs: 0

Thats where the discussion will stay. The house is full of morons.

Member Avatar stuinkc (43.28) Submitted: 10/7/2009 10:38:42 AM
Recs: 0

someone looking to get in to healthcare with a company like sunh would be much better off looking at healthspring ...imho

Member Avatar QwertyHero (< 20) Submitted: 10/8/2009 6:06:34 PM
Recs: 0

someone looking to get in to healthcare with a company like sunh would be much better off buying stock in Sun Healthcare Group. Not healthspring ...fact.

Member Avatar stuinkc (43.28) Submitted: 11/23/2009 10:52:16 AM
Recs: 0

Interesting, numbers speak for themselves qwertyhero.... Like i said, healthspring in my humble opinion. You say sunh, fact. Oops. : )

Member Avatar QwertyHero (< 20) Submitted: 11/30/2009 4:03:54 PM
Recs: 0

yes... numbers do speak for themselves, and the one next to mine is bigger than the one next to yours.


Member Avatar stuinkc (43.28) Submitted: 12/2/2009 1:03:29 PM
Recs: 0

lol, as of this post at this point in time, this is once again rather comedic. come on man, its all good. who really gives a shi* about caps, not like its funding our retirements or paying are bills. you like sunh, okay, great. I dont own it, I did buy healthspring though and it is working out very nicely. And, us two retards squabbling about caps rating in the 40's is kind of funny : )

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