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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (34430)	5/10/2009 9:53:55 AM
From: gcrispin	Read Replies (1) \| Respond to of 78740

In the past I've owned MCK, CAH, and KND. I like MCK and CAH because, along with ABC, they controlled the entire market. At the present time, MCK is the most interesting, but I can't stomach the CEO's pay, compared to CAH. Also, with greater consolidation of pharmacies comes greater price discounts to these companies. In general, I'm not crazy about healthcare stocks as there are too many unknowns. Certainly the demographics are favorable, but the gov. is the big gorilla that will eventually dictate prices. KND has been hammered in the past when Medicare cut reimbursement for nursing homes. Is this caution already reflected in the stock prices? Perhaps. Nevertheless, I don't think there will be much PE expansion to these stocks.

To: Spekulatius who wrote (34430)	6/3/2009 7:21:25 AM
From: anializer	Read Replies (1) \| Respond to of 78740

Regarding OCNF, now that the share issuance to YA Global has ceased, has it affected your outlook at all on the stock. I think its still cheap and a decent outfit. Yet we won't see the shareholder equity as adjusted or EPS that accounts for the 90 million shares for at least 2 quarters. This quarter ended June 30, I assume the weighted average number of shares will not reflect the full amount of shares outstanding. Roughly based on the last balance sheet - additional shares, and capital proceeds from the sale, I show tangible book just over $4.00. Some assumptions though. On FREE, I show tangible book just north of $6, the big difference relating to FREE's EPS which is better than OCNF's.