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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (43665)8/1/2011 12:46:28 PM
From: Grommit  Read Replies (2) of 78525
 
OHI "It's not clear to me that anybody actually knows right now what cuts will hit healthcare reits".

> the government plans to cut Medicare reimbursement rates by 11.1 percent.

And here's another opinion, that I do not buy into:
finance.yahoo.com

..............

Your comment is correct. Immediate medicare cuts are known, but future ones are unknown. And the effect on these reits is also unknown. And there is a layer of protection because they own the buildings and do not operate the businesses. But if the operators are nailed, it will trickle down (up?). But that's all speculation. And then, even if the profitability of the reits like LTC, are unaffected. Will all the news over the next year beat the stock down anyway? IMO, there are much better investments elsewhere.
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