NovaMed, Inc. (NOVA)

excellant place to be

Industry leader for medical centers

vanamonde

Nice L/R Hit this one hard tommorrow.

growth looks promising

GOOD MORNINGSTAR REPORT

Top line is growing very strongly. Bottom line will take a while to catch up, due to the fact they are borrowing to finance acquisitions. Management shows a very long-term view and is in a strong growth industry. When the bottom line catches up with the top (and I think it will within a year or two), we'll see a strong return.

Added to my positions yesterday. Just could not pass up the great prices. With the Kalamazoo center and the interest savings I think the earnings in Q3 are going to make anyone happy they bought at the current prices.

Estimated to fire-up revenue by 3.5 times by the end of the year.

ASCs are sort of specified medical segment niche, so the company would probably climb up. It's also not that far from 52W low - another reason to expect growth.

Finally, PEG is good.

Started watching this one about two months ago and it is down 15% so I decided to revisit and it passed the mustard.

For background the company's main operating strategy is to acquire, develop, and operate ambulatory surgery centers (ASCs) The stock has been flat over the last two years and sports a PEG ratio of less than one (.82)

Keep those numbers in mind and then consider this: "For each of the past three years, NovaMed has grown operating income more than 40% on average while posting consistent same-facility sales growth in the double-digit range. Most recently, the company reported a 33% increase in third-quarter income, fueled primarily by the growth in total surgical procedures performed"

They did issue $75mil worth of notes a few days ago which is about ½ their market cap but this was just to reload the war chest. Management has been aggressively expanding via acquisition ahead of the curve at very reasonable prices.

Given that ambulatory surgical centers are gaining in popularity, especially with outpatient procedures it seems the only thing that could stop them is insurers.

I wonder where they come in on pricing versus traditional hospitals... So I checked their website and came away convinced that they are undercutting traditional healthcare services. As cost pressures continue in medicine, the low cost/high quality provider will prevail. Here’s betting on that...Where's the double down button? Wish they had one of those!

Hard to go wrong with a quality health care pick. Down over 25% from 6 months ago, it appears to have found support at the current price (low $6 range).

Really should go up from here.

Health care, cheap price, good numbers, the bull is still here.

This stock will take a few years to mature. Managment team is solid and visionary - a nice combination for those willing to wait through the costs of acquisitions. ASCs are gaining in popularity, especially with outpatient procedures.

Ambulatory surgery is the future as hospital rooms get more expensive and technology improves with less invasive surgical techniques.

whatever

7.39
ambulatory surgery centers throughout country focused on eyes - room for growth! adding new centers regularly

at bottom of up trend channel, showing resistance here, but could pull down to 500 day MA at $6.80 before breaking back up - below 50 and 200 day now, but slightly oversold here - historically bounces up from 500 day - very heavy resistance at $6

Possible take over candidate.