It is a definite long term HOLD. I am buying 500-1000 share blocks at low $10's and selling at plus 5%-7%.
This is like shooting ducks in barrel ! Even if it drops a little, it comes back. Or you just hold it for the big pay day.
That trend in LTC sales is very scary. I and my parents own rather large LTC policies. Premiums average $3400 per year. The only buffer between GNW and my premiums is the State Insurance Comm. If GNW is in trouble, the Ins Comm will OK potentially huge premium increases. AND, all because of society's belief that the Gov't will take care of them so they don't buy care insurance. This country will go bankrupt !!!
It would seem that GNW needs to reorient their business to produce enough cash flow to offset the downward trends and costs of the LTC division...or sell it.
Just look at what Marriott did when they split up the segments. I just went through, and purchased their Luxury Villa Vacation Package. It is 3 times better than the Marriott product and more user friendly.
I buy what I know, and this has potential.
They need to set up a relationship with an established medical products company that has a 'good' sales team that can jump start unit volume. Then, use strong testimonials from the new users to get a PR campaign going that can increase sales. Pay the new sales team a big commission and watch them get this started. Otherwise, this is going to be a Chinese water torture, drip....drip....drip.
If they don't get it established quickly, competition will end this company.
Why doesn't the BOD move this company to the Sales Block. GE Medical, SIEMENS, J&J all could take this technology and with their clout in the Operating Rooms and Hospitals make it a success.
Any thoughts ?
Let's hope they maintain the % value level against the new qty of shares and price. They have had a good run, but let's see if they hold the prior % dividend level. THX
OK, let's try this again...
1 for 2 split; you had 2 shares, you now have 1 (at twice the price)
If, they maintain the .29 dividend per share, your dividend is now half what it was because you have 50% less shares...dividend per share.
What is it I am missing ?
If the dividend is a dollar amount, then the % is half what it was. The reverse split means they pay out 1/2 the amount per dividend share. They benefit from a cash standpoint.
Just watch the prime rate. If FED raises interest rates, this will start to tank. Their main cost is "cost of money"
The real joke is the the NBS 'Chief Visionary Officer' released a commentary that states that the trial went well and that the findings should support the Phase 3 Trial. This guy is a moron !
NVDQ would seem to be a viable target ?
I am not attempting to start a takeover rumor mill.
But, a J&J, Siemens, or GE Medical could be very interested. Especially since GE is now looking to spin off its residential appliance product line. They should have plenty of cash and they have a good medical group.
These larger companies could readily move this technology quickly into the market.
The real question to ask yourself 'would I feel more confident on the Operating Table knowing that my surgeon is using this technology' ? It is the same question you would ask of Intuitive with DaVInci !!!
The answer is obvious.....
Sure; Canaccord tees it up with a surprise upgrade and new PPS target. Then, the MM's move in and steal the shares. OR, someone knows something and the sell off is a result of the rumors. But what and where. By the time the retail investor gets the 'real' news, it's too late.
Obamacare is a stimulus for HTA. Insured and non-insured are seeking an alternative to primary hospital or out patient services in a hospital. Just look around a hospital and count the number of specialists or ambulatory care offices that are there (x-ray, dialysis, 24 hour care clinics...the list goes on). The reason they exist and are multiplying, is that they offer lower cost services versus a hospital. Who owns all those adjacent medical center buildings around the hospitals ? .....HTA. Occupancy rates are very high. This just makes sense.
Just like other micro bios, this is getting moved by large 1/4-1/2 cent profit margins. Now, the trend is to accumulate and start all over again. Admit it, the volume is simply block positions that will turn as soon as they get an extra 1/2 cent. This is not a buy and hold at this point.
Potential yes, but not solid until they get their act together.