Nobilis Health Corp (HLTH)

HOLD
Since its IPO they have bad one bad quarter after another. The only positive is that the CEO has indicated he wants to buy the company, possibly for $1.
PAST TOP PICK
(A Top Pick Nov 19/07. Down 85%.) Missed 3 quarters in a row. Tax loss selling ran the stock way too low. Yield is almost 30%. Hurricane affected their last quarter but they still generated enough cash to cover distributions. Hold and hope the next 2 quarters are better and the stock recovers.
HOLD
Health care in Texas. Disappointed 3 quarters in a row. Prior to this his forecast was $1.10-$1.20 up free cash flow per share but will now obviously be lower. Currently gives a 27% dividend yield after they cut the dividend. Extremely cheap.
TRADE
Underlying business is sound. Will consider what to do with it at the end of the year. Pretty insensitive to who wins the federal election. This company is an execution problem.
N/A
Doesn’t know this stock. Two buys and two holds from analysts.
DON'T BUY
Located in Texas with ambulatory surgical centres, essentially day surgery. US insurance companies are applying a lot of pressure to doctors to stay within their own local hospitals so this company is not meeting expectations in earnings and cash flow.
PAST TOP PICK
(A Top Pick Aug 7/07. Down 48%.) Healthcare in Texas. Disappointed in the last 2 or 3 quarters. Yielding 16%/17%, which their numbers seem to be able to support.
BUY
Likes it. Bought more at $7.50. Heath centers in Texas where there is gas and oil and those people are rich. Baby boom is aging so more people go to health centers. More than a $1 of free cash generated this year. Expect them to make a creative acquisition. 14.3% pay-out. He thinks it’s safe.
DON'T BUY
High dividend paying corporation, not a trust. Owns ambulatory surgical centres in Texas. Recently had some disappointing results, which was reflected in the market. Thinks management has guided the market incorrectly and is now paying the price. If they improve the results, he would consider re-buying.
STRONG BUY
Big believer in this company. Paying a virtual 10% dividend yield. Stock dropped because 1) market is weak 2) there are a few very large sellers looking for liquidity 3) didn't make huge acquisitions as promised and 4) numbers were a little bit disappointing. Fabulous entry point.
HOLD
The recent results were slightly lower than expected so the stock took a huge beating. Confident that the stock will come back.
TOP PICK
Recession proof. In Texas, which is doing extremely well. Should make $1.75 free cash flow per share next year. A lot of layers of growth.
TOP PICK
This is healthcare in Texas. Company intends to make acquisitions. Giving $1.20 in dividends and this should be growing. Won't be affected by recession.
TOP PICK
Owns surgical clinics in the US. Offers to manage clinics to increase business for a share of their overall profits. Expect growth on 3 levels. Increased health-care expenses, strong location in oil-rich Texas and accretive acquisitions.
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