National HealthCare Corp (AMEX:NHC)

Producing cash, showing a positive trend upwards in ROIC, and priced below intrinsic value.

Good ratios compared to its peers. Liked that it has a dividend.

12/13

Not a good idea to be purchasing health care stocks when so many changes are looming. Playing with fire and it's not even cheap.

With a growth rate persistence of 95%, and an earnings predictability rating of 80%, the stock price will eventually respond to that growth.

The potential for a drop in revenue due to 'Obamacare' is now built in to the stock price. Looking beyond that, we see an absolutely stellar balance sheet, very high insider ownership, almost nonexistent analyst coverage, an excellent dividend, and the long term factor of the so-called graying of America. Peter Lynch would approve.

It has a dividend.

Earnings year-over-year are incresing ... so why is the stock down from 1 year ago (high of $54) and flat over the past 3 years ? lt's called "flying under the radar." And it pays a decent dividend, too.

Sensible fundamentals in old people. It's a dirty business but somebody will do it.

Healthcare for seniors will continue to grow.
Good balance sheet, insider investment

The growing need for senior healthcare in our country is the best reason for this rationale. This Company is very well run and will continue to be well run for many years to come. The recent change in management will assure this. Demand for expansion in the senior healthcare industry will mean that NHC will continue to grow.

The need for assisted living and independent living centers will increase significantly. A safer play than commercial real estate because we will all get old but still crave independence. Once we can no longer care for ourselves the second phase begins assisted living.

5 Star/Small cap/Pays dividend

Solid earnings history; aging population should mean more business...

Another intrinsic value play

We are going to keep on getting old!

great dividend payer, family owned, baby boomers are going to make this one profitable company to have.

National HealthCare operates long-term healthcare centers which include assisted living and independent living centers. Its business activities include providing skilled and intermediate nursing and rehabilitative care, senior living services and insurance services. The company manages 74 long-term health care centers with 9,177 beds in 10 states and provides other services in two additional states.

The long-term care industry has gone through a long period of financial distress caused by material reductions in government payments for services and dramatic increases in the cost of professional liability insurance. As a result, the company has limited its expansion efforts and used cash generated from operations to repay debt. Long term debt has reduced from nearly $60 million in 2000 to $13 million in 2005. The publicly sponsored programs, Medicare and Medicaid, are themselves facing an issue, wherein the ratio of the employed paying taxes to people drawing benefits is decreasing, while the price of health care services is continuously rising. The company derives bulk of its revenue from Medicare and Medicaid premiums. Consequently, any reduction in reimbursement or payments would have a direct and negative bearing on its earnings. Also, the company faces stiff competition from WellPoint and United HealthCare.

For the nine months ended September 2006, revenues increased by merely 4.5% reflecting 7% increment in net patient revenues and 5% decrease in other revenues. National HealthCare recently announced that it would buy National Health Realty, a real estate investment trust it spun off in 1997, in a cash and stock deal. This merger will provide a larger asset and equity base that is anticipated to enhance the company’s future growth and long term increases in shareholder value. However, the deal will build an extra pressure on the slow growing profits of the company in the near term and in a very competitive scenario, which makes it an underperformer.

Has been a great performer and dependable stock to own for more than 5 years.