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Strategies & Market Trends : Disciplined Investing, especially the NAIC way

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To: - with a K who wrote (420)10/1/2003 12:48:12 AM
From: The Philosopher  Read Replies (1) of 469
 
What about HMA?

Its growth lines are solid as a rock. In an interesting niche market, buying up rural hospitals and turning them around. Seems to know what its doing. Profit margins and return on equity are both solid. Had a very high PE in 1998, now coming down. Stock price really hasn't budged in five years, while growth has been a steady high-teens-to-20% all that time.

The analysts don't like it. Value line gives it a 3, but that's for the coming year; five year projection is 17% - 31% annual appreciation. First Call VAluation has analysts all over the map -- 5 say strong buy, 6 say buy, 5 say hold, 1 says underperform, 1 says sell.

Their debt load is a reasonable 31%, their cash flow is solid and increasing in line with sales and earnings.

I can't see any flies in the ointment. They're only in 15 states so far, so lots of room to grow. They seem to know what they're doing, and to do it well. Not an exciting stock, unless you think making money the old fashioned way is exciting.

Any insights or thoughts out there?
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