Gordon Reid
Community Health Systems
CYH-N
PAST TOP PICK
May 30, 2014
(A Top Pick May8/13. Down 9.39%.) A hospital owner and manager in non-urban settings. As the Affordable Care Act takes hold, there are going to be more people showing up at hospitals with insurance. The most expensive place to treat someone is in the emergency room. Still likes the company very much. Over the last year they bought, and are digesting, Health Management Associates, which was a pretty big bite and a little dilutive for them. Longer-term, he feels this has a lot of legs. From here this could probably see a 20%-25% move in short order, to put it back into fair value.
(A Top Pick May8/13. Down 9.39%.) A hospital owner and manager in non-urban settings. As the Affordable Care Act takes hold, there are going to be more people showing up at hospitals with insurance. The most expensive place to treat someone is in the emergency room. Still likes the company very much. Over the last year they bought, and are digesting, Health Management Associates, which was a pretty big bite and a little dilutive for them. Longer-term, he feels this has a lot of legs. From here this could probably see a 20%-25% move in short order, to put it back into fair value.