Medical Facilities Corp. (DR.TO)

Originally this was a US income trust with facilities in South Dakota, which expanded into specialized medical facilities in Oklahoma and California. The issue is that some of the changes with healthcare regulation on private procedure reimbursements has created headwinds.

Some new hospitals coming into their areas were challenging this company's existing facilities, and the stock dropped substantially. He started buying it below $15. Likes the dividend yield, and doesn't think it will get cut. Just announced an acquisition of some US properties. Dividend yield of close to 9%.

Has had an "up and down" year, and a lot of people are concerned, partially about the "pay in" system in the US medical market. They have surgery centres in the US. A nice little company, and the dividend is well covered by cash flow, but investors are concerned about growth potential and changes to the system. It may be a victim of "there is more excitement elsewhere". Well run and well-managed. He would view this as an income story, not 100% secure income and a relatively small company. Dividend yield of 8.3%.

This has fallen again. The issue is that they own 6 surgical centres in the US and there is competition coming into these markets. All the things that people worry about are in place and he is using this as an opportunity to get a position. They do own the buildings. Dividend yield of 8.46%. (Analysts’ Price Target is $16.)

He is looking into it right now. It is for income as there is not much growth. He is cautious on US health care business because of the Medicaid situation. It is not a dividend in jeopardy but he is cautious because of the sector. The value proposition on this one is attractive at present. It is a steady business. It is for income and not for growth.

They own source surgical centres in the US. They own 55% of the properties and the surgeons own 45%. The surgeons get paid, but they also have an interest in the business. They are mainly in the Midwest. A relatively small company. Management knows what they are doing, and will continue to buy more of these things. He wants to see a 5% dividend yield, which means it will be a $20 stock, and he will reduce his position in it. Dividend yield of 7.5%. (Analysts’ price target is $16.)

Dividend yield of 8% probably holds. They have 3 or 4 outpatient type hospitals in the US. Brought in a younger man when the founder decided to retire, but the younger man retired, possibly due to health reasons. You want to have leadership in place. Under a little margin pressure, but doesn’t think there is any risk to it. He likes the company.

He owned it for a moment. US centers. They deal with surgeries such as knee replacements. With the healthcare situation and its volatility in the US, they missed numbers in the US.

This is a fairly solid, continuing dividend payer. They are running rather nice surgical facilities. Took on new management about a year ago, and have done well. The quarter has been a little soft, but they are in a good sector. Have about 5 facilities across the US. A good operation.

Over the last 24 months, when investors thought interest rates were going higher, dividend stocks got crushed. This company kind of got wrapped up into that. It was a nice income stock that people decided to sell. That has completely changed over the past 8-9 months, and dividends are back in and everybody loves it again. Doesn’t know how much upside there is, but it is a solid dividend paying stock. If you are an income investor, you can use this as an income allocation. If you are a growth investor, he wouldn’t really go here.

A pretty good company overall. Operates 6 facilities in the US. Dividend yield of approximately 6.4%, which he believes is sustainable. Management has a net cash position. They recently appointed a new CEO, who he thinks will increase their focus on new M&A activities. The risk is what will happen on the regulatory front. You really have to understand what is happening in terms of reimbursement trades and the Medicare and Medicaid situation. Doesn’t know how the industry will evolve, and this is a big question mark. However, feels this is one of the better managed companies. Not trading at a very expensive multiple. Because of regulatory concerns don’t overweight your position.

Hospitals, but more for day surgeries. Originally started in South Dakota, but have diversified into California for plastic surgery. One facility didn’t do all that well. There is some concern with certain aspects of the affordable care act and about physicians owning facilities. You are always at risk if a key doctor leaves, and he worries about the model and how surgeons will be allowed to own a good chunk of the hospitals they work in under the new provisions. Dividend yield of over 8%.

(Market Call Minute.) Good business, but not enough facilities in the US. Too much risk for him.

A Canadian listed company with operations only in the US. Earnings are in US dollars. Great yield of almost 8% and very good cash flow.

Hospitals in the US. As investors wanted to shift from energy. This is well managed and well run. These facilities have been grandfathered from Obama care. If there was more pullback he might enter. 7.4% yield.