Wednesday, August 20, 2014

Thinking Healthcare

The Next MFI Tranche

Perhaps it is because I just went to the doctor today for a three month check up on my ACL surgery (all is well), but I am thinking healthcare today. That may be a theme of my next MFI tranche.  From everything I am reading, the ACA appears to really be helping the healthcare industry, and I do not think it is too late to get in on this trend.

I made a listing of potential stocks for future research:

ENSG - nursing and rehab services
MD - neo natal care
UTHR - pharmaceutical
ANIK - bio med
MMS - process services for medical industry

I think this is an interesting group of names in an industry that should have good tail winds for the next several years.

To be continued

In Other News

I have two companies reporting earnings tomorrow - GPS and BRCD.  Always a bit of a crap shoot, hopefully my homework will pay off.

I did buy two stocks today.  I bought TCMCF, which is the new symbol for T-Meds.  If I have done the math right, these are a great deal right now (I think as they are so much more lightly traded, so price dislocation is more common). I bought the shares from $13.80. TC trades at 3.05. The multiplier is 5.388, which implies a value of $16.43 per share, plus 3 40 cent dividends.  So I figure if TC stays where it is today through next May, I make 26%.  That seems pretty good for 8 month investment.   I may buy more shares is the dislocation in price continues.  This will be part of my dividend portfolio.

I also bought a few more shares of TLM.  I still believe there is a strong likelihood of a bid for TLM.

I have changed BBEP so my dividends reinvest, I am becoming more and more a believer in their ability to create value.  I do not have the table in front of me, but I did look at my holdings by portfolio.  MFI is my smallest at a bit more than 20%. Cash was 28% and dividends and discretionary portfolios were a tad over 25%.  My takeaways were (1) I have plenty of cash and (2) I am underweight MFI which has been a top performer.  So I will continue to try and ramp that up.


Joel said...

I think healthcare is a great industry to think about over the next 10-20 years, with the aging and sad but true unhealthy population. I've owned Davita for just over a year (bought around 56.90). Dialysis services company that berkshire started buying over a year ago (and has added positions to several times). Maybe one to consider...Would love to hear your take on it

Marsh_Gerda said...

I know I looked at DVA when Berkshire first began buying. I just never pulled the trigger.