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

To: E_K_S who wrote (49759)	10/14/2012 3:56:22 PM
From: Sergio H	Read Replies (2) \| Respond to of 78708

Earlier this month Berkshire Hathaway added shares of DVA as it hit new highs. Berkshire also added shares in Sept. finance.yahoo.com This company is enjoying a duapoly with FMS in providing outpatient dialysis services in the U.S. and has recently expanded into China. DVA does not pay a div. and does not have a preferred. FMS is in 40 countries, while DVA is focused primarily in this country. Another co. in the healthcare sector that has a good history of fat profit margins in USPH. They run medical clinics and rehab centers. There's little debt and the stock pays a small div. The div. was initiated last year and was increased this year. I like USPH's business plan. They recognize that their business is dominated by many small players and have grown to be the third largest co. in the U.S. in their sector. Since 2005, they have made several acquisitions all funded by their free cash flow. There are financial presentations on their website if you are interested: corporate.usph.com They missed on earnings in their last report as the numbers were a little less than expected, providing a good opportunity for entry for anyone interested. Insiders have been selling and some institutions lowered their positions recently. I have an interest in DVA and plan to start a position in USPH next week.

To: E_K_S who wrote (49759)	10/15/2012 11:35:42 AM
From: Grommit	Respond to of 78708

EKS -- I sold all reits that were dependent on medicare -- LTC reits. You may be right here, but who knows? "You do raise a possible concern that fees charged may be reduced if/when Medicare reimbursement amounts decrease but I think the market may have priced this in the stock" I also avoided all mortgage reits in favor of hard assets -- buildings. I was occasionally jealous of the great div yields but i thought that they were too risky. clipped opinion: Wrong side of the curve...mREITs make their profits by trading the interest rate curve, i.e, buying short-term lower rate mortgages and selling longer-term mortgages which bear higher rates. The difference between the two is their revenue. It is my opinion that Bernanke's latest "QE to infinity" announcement a month ago, will make it much more difficult for mREITs to make money because of the tightening of this spread. In its latest Q3/2012 market commentary, Annaly's management stated that: Spurred by global monetary policy, and aided by fundamental credit improvement since the crisis, flows into the sector continue driving yields and spreads to historic lows. 10:03 AM Liquidation in mortgage REITs picks up where it left off on Friday, with nearly the entire sector lit up bright red. Leading today's decline is CYS Investments ( CYS -4.6%) after being cut to hold at Wunderlich. No details are available, but presumably the analysts there read the papers: interest margins are declining and mortgage refinance activity (prepays) is on the rise 2:44 PM Mortgage REITs continue to get repriced for lower yields going forward with earnings reports from JPMorgan and Wells Fargo not bringing good news. Both banks reported sliding net interest margins and booming mortgage business (some if not most of which is refinancing) - an ugly combination for leveraged owners of MBS .....................