AMSG. In for a few starting shares today.
"About AmSurg: Partnering with over 1,200 physicians at more than 200 outpatient surgery centers across the United States, AmSurg is the nationally recognized leader in the development, management and operation of outpatient surgery centers." (from their website)
Looks like it's been profitable in each of the past ten years. ROE is poor/middling at about 10%; it does seem to be consistent though over the past several years (between 10-11%). Stated book value has increased in each of the past ten years. In good times, stock has traded at or above 2x stated book value. With the stock now near a 12-mo. low, it's trading about 1.05x bv. And at .81 p/sales, that's low vs. its yearly average of at least 1x p/sales (in each of the past ten years).
So I am expecting a reversion to mean. Very possible there are negative influences of the new USA health care plan that I'm not aware of, or else that AMSG's low roe is now, in the lowered stock price, more appropriately valued, (i.e maybe the stock was overvalued in most of the past ten years). P/e is now about 10 and that number continues a downtrend over the past decade. This consistent fall perhaps indicates AMSG best growth is behind it.
I'm in for a few shares, and a few more if stock will drop further on no adverse news. Intending to hold 12-18 months to see if I get that stock reversion. |
