• Thu, May 5, 2011

LPNT, HMA, UHS, MDTH, CONM, MD, Medical-Hospitals Stocks Overvalued

May 5, 2011/ M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Medical-Hospitals sector and these stocks are the most undervalued as of today. LIFEPOINT HOSPITALS INC (NASDAQ:LPNT), HEALTH MGMT ASSOCIATES INC-A (NYSE:HMA), UNIVERSAL HEALTH SERVICES-B (NYSE:UHS), MEDCATH CORPORATION (NASDAQ:MDTH), CONMED HEALTHCARE MANAGEMENT (AMEX:CONM), MEDNAX INC (NYSE:MD) are all expected to go Down as they are Overvalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.

The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:

     Symbol     Company Name                        Last Close     Fair Value     Valuation                   Industry               
     LPNT       LIFEPOINT HOSPITALS INC             $41.48         $32.33         28.30% Overvalued           Medical-Hospitals      
     HMA        HEALTH MGMT ASSOCIATES INC-A        $11.01         $10.55         4.40% Overvalued            Medical-Hospitals      
     UHS        UNIVERSAL HEALTH SERVICES-B         $53.29         $42.15         26.40% Overvalued           Medical-Hospitals      
     MDTH       MEDCATH CORPORATION                 $12.92         $9.03          43.10% Overvalued           Medical-Hospitals      
     CONM       CONMED HEALTHCARE MANAGEMENT        $3.00          $0.75          300.00% Overvalued          Medical-Hospitals      
     MD         MEDNAX INC                          $73.06         $65.99         10.70% Overvalued           Medical-Hospitals      

Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.

Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.

LIFEPOINT HOSPITALS INC (NASDAQ:LPNT) - LifePoint Hospitals Inc., through its subsidiaries, operates general acute care hospitals in non-urban communities in the United States. The companys hospitals provide a range of medical and surgical services comprising general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services, and pediatric services, as well as specialized services, such as open-heart surgery, skilled nursing, psychiatric care, and neuro-surgery. Its hospitals also offer outpatient services, including one-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine, and lithotripsy. As of December 31, 2009, LifePoint Hospitals owned or leased 47 hospitals with a total of 5,552 licensed beds in 17 states. The company was founded in 1997 and is headquartered in Brentwood, Tennessee. Lifepoint Hospitals Inc. (NasdaqNM:LPNT) operates independently of HCA Inc. as of May 11, 1999.

HEALTH MGMT ASSOCIATES INC-A (NYSE:HMA) - Health Management Associates, Inc., together with its subsidiaries, primarily owns and operates general acute care hospitals in non-urban communities principally in the southeastern United States. Its hospitals provide a range of services, including general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, and pediatric services. The company also offers outpatient services, such as one-day surgery, laboratory, x-ray, respiratory therapy, and cardiology and physical therapy. In addition, it provides specialty services in cardiology, neuro-surgery, oncology, radiation therapy, computer-assisted tomography scanning, magnetic resonance imaging, lithotripsy, and full-service obstetrics. As of January 10, 2011, Health Management Associates operated 59 hospitals with approximately 8,800 licensed beds in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Missouri, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Washington, and West Virginia. The company was founded in 1977 and is based in Naples, Florida.

UNIVERSAL HEALTH SERVICES-B (NYSE:UHS) - Universal Health Services, Inc., through its subsidiaries, owns and operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Its hospitals provide general and specialty surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, pediatric services, pharmacy services, and behavioral health services. As of February 25, 2010, the company owned and/or operated 25 acute care hospitals and 102 behavioral health centers located in 32 states, as well as in Washington, D.C. and Puerto Rico; and manages and/or owned 7 surgical hospitals, and surgery and radiation oncology centers located in 5 states and Puerto Rico. Universal Health Services, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.

MEDCATH CORPORATION (NASDAQ:MDTH) - MedCath Corporation, together with its subsidiaries, engages in the ownership and operation of hospitals in partnership with physicians in the United States. The company focuses primarily on providing acuity services, including the diagnosis and treatment of cardiovascular disease. It also owns and operates mobile cardiac catheterization laboratories. In addition, the company offers consulting and management services to cardiologists and cardiovascular surgeons. As of September 30, 2009, MedCath Corporation owned and operated 10 hospitals with a total of approximately 825 licensed beds in Arizona, Arkansas, California, Louisiana, New Mexico, South Dakota, and Texas. It also owns and/or manages 16 cardiac diagnostic and therapeutic facilities. The company was incorporated in 2001 and is based in Charlotte, North Carolina.

CONMED HEALTHCARE MANAGEMENT (AMEX:CONM) - Conmed Healthcare Management, Inc. provides correctional healthcare services to county and municipal detention centers in the United States. Its correctional healthcare services include general healthcare, acute care, surgical, laboratory, IV therapy, EKGs, diagnostic imaging/radiology, electronic medical records, dialysis, durable medical equipment, hospital, mental health, pharmacy, physical and occupational therapy, dental, and electronic medication administration records services. The company also provides value-added services, such as healthcare services consultations, audit compliance programs, occupational safety and health administration compliance programs, risk management services, sick call services for facility staff, and emergency services for staff and visitors. As of March 25, 2010, it served county and municipal correctional facilities in 38 counties in 7 states, including Arizona, Kansas, Maryland, Oklahoma, Oregon, Virginia, and Washington. The company is based in Hanover, Maryland.

MEDNAX INC (NYSE:MD) - MEDNAX, Inc., through its subsidiary, Pediatrix Medical Group, Inc. provides neonatal, maternal-fetal, other pediatric subspecialty and anesthesia physician services in the United States and Puerto Rico. The companys neonatal care services include clinical care to babies born prematurely or with complications through neonatologists, neonatal nurse practitioners, and other pediatric clinicians. Its maternal-fetal care services comprise outpatient and inpatient clinical care to expectant mothers and their unborn babies through maternal-fetal medicine sub specialists, obstetricians, and other clinicians. The companys pediatric cardiology care services consist of inpatient and outpatient pediatric cardiology care of the fetus, infant, child, and adolescent patients with congenital heart defects and acquired heart disease, as well as adults with congenital heart defects through pediatric cardiologist sub specialists, pediatric nurse practitioners, echocardiographers, diagnostic technicians, and exercise physiologists. Its other pediatric subspecialty care services include care of critically ill or injured children and adolescents through pediatric intensivists. The companys affiliated physicians provide clinical services in labor and delivery area, nursery, and pediatric department. It offers anesthesia care services through a team of physician anesthesiologists, certified registered nurse anesthetists, and anesthesia assistants. The company also provides medical care and consultations in various settings and situations. As of December 31, 2009, its network comprised 1,484 affiliated physicians, including 928 neonatal physicians. The company was founded in 1979 and is based in Sunrise, Florida.

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