MedCath Corp (MDTH)
A healthcare provider focused primarily on the diagnosis and treatment of cardiovascular disease.
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Blindly following Darth Maul into the Pit! Why Not?????
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Uncontrolled financial bleeding in the Cath Lab. This patient is not long for this world. The government vultures have begun to gather.
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MedCath was started to capture the big dollars associated with interventional cardiology procedures. These same procedures are now the target for government cuts, at the same time that the volume of these procedures has been decreasing, probably due to better medical treatment of risk factors. Bottom line is that profits will continue to fall, as the stock price has fallen over the last 4 months. I doubt that any health care bill will help this for profit company.
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Voter sentiment is strongly against the health care bill, which may be giving hope to the MedCath investors that this company can avoid the health care cuts that are coming. I'm optimistic that the government can find cleaver ways to destroy industries using the best of intentions. This stock price rose today, but the trend is definitely downward.
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Low ratios compared to historic values.
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Current 9.69, Sept 18 09. Limit 8.70
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Considering Book value, earnings, and market cap...this should beat the market in 5 years.
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down $4 to $22
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MedCath continues to expand its base of cardiac specialty hospitals. Trades at a discount to peers on EV/Ebitda basis. New management has solidified operations and added cost controls. Long term cardiac care is in the sweet spot of serving an aging Baby Boomer generation.
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A David Nierenberg pick... many other good institutions are buying it up.
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Recent share rise base on nothing. Sold off some underperforming assets but not many to begin with. No plan for growth into current price only potential is for buy-out.

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