Gordon Reid
Hanger Orthopedic Group
HGR-N
TOP PICK
Dec 15, 2010
Orthopedics distribution and patient care services. Most revenues come from insurance or Medicare so are pretty much guaranteed to be paid. Growing well.
Dec 15,2010 Recommended at $21.10 down 29.05%
Industry is down. Still thinks has good prospects, trading at less then 10X for what is expected for 2011.
(Top Pick Dec 15/10, Down 12.13%) Their margins were weak in the third quarter. Medicaid was not covering in certain states. 11 times earnings now and seemingly back on track. Prospects look good going forward.
Market leader in orthotics and prosthetic space. Medicare slowed down their billing cycle. Now 95% of questioned transactions have gone through. 10 times market share of nearest competitor. Solid growth (organic). It is currently below the radar. He has owned it for years and recently bought more.
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