Good opportunity - increasing stockholders' equity, reducing outstanding shares, increasing cash flow, more than double the net margins of their biggest competitor CYH - Community Health, and much less debt. CYH is actually growing faster over the past while, but their debt is way too high for my investment style. One thing to watch out for with both operators is the effect of unionization on their labour costs. I don't have any info right now on current conditions for both, however, I know that these types of environments often produce labor issues, so it is something to watch going forward. On the bright side, demand for health care isn't on the decline.
This news story has 1 comment: