SEPTEMBER 05, 2008 - The Fed will not raise rates after today's employment report that showed unemployment rising to 6.1% - there will be a call for them to lower rates now. Would continue buying recommended banks and brokers. The July 15 lows of banking and consumer stocks will hold - commodity stocks will go lower but think natural gas has bottomed. It may be getting time to buy the semis (SOX) that hit a five year low today. Oil has not bottomed yet.
co manages the largest group of neonatal newborn specialists in the US - provdes outsourcing services for their back office functions (a $2-3B market) - like it because it is not economically sensitive to a slowing economy - co also has a 22% market share of the neonatal intensive care business (a secular growth sector) - their stock trades near its 52 wk low because the Street doesn't understand how the Medicare bill before Congress will help - the bill will raise reimbursement rates for doctors, thereby raising the baseline for PDX's outsourcing contracts - think the earnings improvemnt coming in the 2nd half off the year is not in the stock (see 13% earnings growth in 2008 vs 8% estimated by the analysts) - at a 17x multiple think the stock is worth 62
Back to Top