Aren't these the times PE load up on fire sales? Yes, they can't exit in these environments, but last quarter's call seem to indicate lots of "dry powder" and analysts worried about whether they can even deploy it all. Well, in this global carnage, doubt BX will have trouble finding things to buy at bargain prices to exit when things turn in a year or two. Gotta be in PE for the long run.
Did I mention LOCO is a domestic play, immune to the currency commodity collapse in the world? Further, oil prices at decade lows can only benefit LOCO...
The whole sector is pretty much up today. LOCO down 5% is rough, especially given that their valuation now is pretty cheap for a company expected to earn close to $1/sh next year and expanding from a regional chain to national chain. Given the company is solidly profitable and has great growth ahead, why would it continue to sell off at these levels?
Reading CG last earnings transcript, management said they have been very slow to deploy capital this year because they saw valuations as being too high, but at the same time, they were raising record cash from investors, so this is opportunity for them to finally pick up stuff on the pullback for the next up cycle, which may be a few years out.
As for oil, less than a tenth of their portfolio is exposed to it, but it still hurts. The positive is that CG did do a bunch of exits in the first half when markets were strong, which is why they were also able to pay such a large dividend.
The scary thing is the S&P is flat to down 1% or so this year and CG is down like 20+%. Hard to imagine if the S&P would to see a correction....
I'm scratching my head... Yes there are global growth issues and commodities and currency prices collapsing outside the US, but US based healthcare in a strong US economy should be as insulated as you can get from global turmoil. Also, CYH is already 30% off highs and in bear territory. Really surprised by another big selloff today.
Unless there are regulatory/Obamacare headwinds, I don't see why healthcare is getting hit so hard today when the market is down like half a percent.
Even if markets are spooked, US beaten down healthcare stocks arent the risky stocks you should get rid of if you are fearing problems abroad. Anyone have a reason for why healthcare got hit much harder than other sectors today?
A $60 offer looks awfully good here.... Interesting to see healthcare stocks like THC CYH get destroyed worst than companies like Caterpiller. World slowdown isnt hurting acute hospitals in the US is it? So why the huge selloff in the sector? I came to this sector for cover from the global mess, but I guess i was wrong...
Definitely a good time to be adding. US job growth strong, more insured patients from new jobs generated and Obamacare, aging population, trading way off the highs and at multiples lower than the general market, and no international exposure. Do these guys also own their real estate? What is there not to like?
Sentiment: Strong Buy
BKD was trading in the high 20s prior to the deal with Emeritus. Emeritus was like $21-22. After riding up to $38s, we are back below the merger price today. This combined company has great assets and tremendous scale after these short term integration hiccups. Surprised the stock trades for less than prior to the merger. But with CFFO expected in the mid to high $2 range, getting to buy BKD at less than 10X cashflow is a steal in my opinion.
Sentiment: Strong Buy
Getting hit as hard as biotech if not worst. I can see biotech selloff given Hilary comments and high valuations, but hospitals are almost the exact opposite, stable, profitable, and selling at great valuations. Any reason why they are trading like biotechs on the downside?
Interesting that the company filed to sell shares at these low prices. You would think they would want to do so when the stock price is on an uptrend.
Most of the shares coming from insiders, so why not just put the company up for sale? Company is selling for low multiples and if insiders want to exit, just sell to a KND.
Looks like global markets have sold off lately and will continue. CG is flush with dry power, so why the massive selloff in CG and PE in general? This should be an opportunity as valuations come in...
What's up with this POS? Whole sector is up like 3-4%, but LOCO down 3%. Is this company really the worst in the sector and is the COSIs or a Quiznos??? Thank God the market is up like 600pts, otherwise, LOCO would probably have fallen 20%. Clearly market sees their fast casual concept as one of the failing fast concepts.
I guess I should have visited a store to see the emptiness before I bought this thing... Damn Jeffries, they just have buy ratings on everything...
Seems like CPA is interesting at these levels. With the lowest debt ratios among the Latin American carriers, strong earnings and dividend and low oil prices, seems like CPA could be a relatively safer bet than others in the region. The dividend yield is also really high now, so if things worsen from a macro perspective, they could reduce the dividend and not be at risk of financial troubles.