fwiw, I've started a position in DVI Inc (DVI).
stocksheet.com
Revenues have been up every year (I have only a six year history to review), and earnings have climbed higher most years. Since this is a medical equipment and medical receivables financing company, the debt/eq ratio is high. And that debt has marched higher every year. Shares outstanding have increased too. Furthermore, with an ROE roughly between 9-11, DVI is not, imo, a very profitable-wonderful business. P/sales and p/e are relatively low compared to past years. The stock is about midway in its 12 month trading range: I'm not compelled to call today's stock price a great buying opportunity.
Still, given the company's past performance, and President Bush's desire to increase spending "for priorities like education, scientific research and Medicare", DVI might possibly (I am betting) extend its trend of increasing earnings. The fed's lowering of interest rates (affecting cost of money to DVI) might also help DVI's profits.
Of significance to me, I notice that Baron Asset Fund and Liberty Acorn Fund are the two largest mutual fund shareholders in DVI.
Paul S. |
