Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Spekulatius who wrote (57888)	8/27/2016 12:23:13 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78717

Looks like another healthcare rollup to me. OTOH, maybe the dialysis business has sufficiently protected cash flows that they can keep their margins up and pay down the debt. I'm not sufficiently well informed on the reimbursement model here. Obviously a lot of the procedures are covered by Medicare/ Medicaid, but it's a core service that insurers wouldn't dare pare back. Still, there may be other ways to cut costs. It will be interesting to see how this works out compared with similar trends in hospitals, insurers, distributors, and pharma. Generally speaking you want bond-like but inflation-protected cash flows to do a solid LBO.