Laboratory Corp. of America Holdings (LH)

Doctors' orders;)

LabCorp has a vast national infrastructure

Good management

Strong Balance sheet.

break out past several previous higs

I have contracted with LabCorp on a research study. Our staff drew blood from participants, we sent it to LabCorp, and they sent us results. In theory.

In reality:

they several times billed the wrong account, causing an accounting headache on our end
they sent results late, or sometimes not at all, requiring our staff to spend hours on the phone tracking them down
they didn't bill at all in some cases--causing an accounting headache on our end and still more time on the phone

In theory their business model is more efficient (we did not need our own lab technician nor lab equipment or reagents or anything, we just needed access to fedex and a fax machine)...but their management of every day affairs makes working with them a royal pain, and by the time our study staff was finished fixing all of their errors we might well have better spent the money on our own lab. I will not contract with them again.

From an investment standpoint, their failure to deliver the promised product (lab results) in a timely fashion will lead to dissatisfied customers. Their failure to bill for their product in a correct and timely fashion will hurt their balance sheet (did I mention there were several tests for which our grant was never billed? We eventually gave the money back to the funding agency.).

LabCorp is building scale and increasing returns on capital over time--what's not to like. Medical lab testing is growing, it's a relatively small medical expense, it can dramatically improve medical outcomes, and it is becoming an oligopoly between Quest Diagnostics and LabCorp. All this leads to me to predict 15% returns on equity and high growth for quite some time, which should turn into excellent returns over time.

Laboratory Corporation of America Holdings (LH) - Market cap 6.17 Billion, price/earnings 14.65, Minimal to no long-term debt & low debt/equity of near zero, and focus on lab testing, both routine diagnosis testing and specialty testing services - should prove to be a good niche market going forward.

No pricing difference really between them and competitor Quest. Goldman recently issued sell on quest ironically though LH largest holder is Goldman and they are the only competitor to Quest. I'm not sure how much it can run currently because it's not been beaten down to much. I'm still skeptical of the market recovery. I say my price target is 78.

Large cash reserves, aggressive R&D, excellent quality, and promotion that is highly effective to the younger generations.

A no-brainer for the long term. I've been watching and investing in this stock for years. It is poised to be a long term performer, whatever that is in this market.

I have actually worked this area of business and company seems solid. I expect some volitility over short term as company a bit over prced. Long term, good market position, decent managerial capability, and makes for interesting hold to portfolios with hea;th in mind. I am a bit concerned about EPS,

vanamonde

A quality name in the medical test market. The defensive sector play will help the company weather the current downturn...everybody still needs those medical tests! And the demographics support continued long-term growth. Now is a great time to get in...

$84

As our population ages, there will be more demand for lab tests. At least for those of us who are fortunate enough to have health insurance.

vanamonde

Wanted a good stable Helathcare stock

LH is a prime provider of medical laboratory services. They are everywhere and do everything. I don't think any other company comes close. Their financial basis is strong and their business will just keep growing with increased demands for medical lab services. LH has been a solid performer, and I look for continued good results for the long run.

Laboratory testing is the best value in health care and baby boomers are getting older by the minute.

just a hunch.