Category: Health Care Sector
As the fourth quarter of 2015 begins to close, the worldwide markets are down substantially. It is quite a bit concerning for those who are in healthcare. A recent report issued by Mackie Research Capital showed that there are some companies that are coming out on top, even if the market is plummeting. Analyst Russel Stanley says that there is one company who is bucking current trends. The report he issued have the top picks for the last quarter of the year. The company Nobilis Health Corporation is his top pick. So what makes Nobilis so special during these difficult times? Well, they own and operate ambulatory surgical centers and hospital across the country. This company has an excellent track record over the past few years. Their record of high organic growth cannot be denied according to Stanley. When it comes to mergers and acquisitions, he also noted that they have a strong record in that department too. In September of 2014, the company made their first acquisition for their very first hospital. They paid more than $7.5 million in cash. This is just one example of a company that takes their business seriously. They opened a hospital without any debt at all for the building. That is pretty impressive from a business standpoint. Another example of how this company is on top is that on September 23 of this year, they made an announcement to the public that they had acquired and taken control of the Freedom Pain Hospital. This hospital is located in Scottsdale, Arizona. They have a 60 percent stake in the matter and paid $3.2 million. After analysts reviewed the transaction, there say that there is macro trends that are supporting the story additionally. Stanley stated that they view Nobilis as an undervalued player. There is increasing demand for surgical procedures, as the population continues to age. One must also not forget the prevalence of obesity in our society. Stanley updated the research clients about his rating and he put a “buy” rating on Nobilis with a price tag of $12.50 for the next year. That would imply a return ratio of about 72 percent. It’s clear to see that they are the ones to watch as the year ends and the first part of 2016 begins. This company is undoubtedly doing something correctly or they wouldn’t have the ability to pay cash for a hospital.