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Tuesday, January 15, 2008

Good Care Investment

With Dow falling almost 300 points and Nasdaq falling 2.5% in a single day, it looked as if there there is no safe heaven for investment besides bond market or CDs. However there is a group of stocks which surprisingly gained quite a bit today. This winning group is the hospital industry which gained 0.73% today - a relatively good number considering industry like recreational goods fall 7.18%.

So the noticeable winners in the hospital industry are:
  • Tenet Healthcare Corp. (THC): shares of the general hospitals operator gained 3.26% to $4.44 per share on analyst upgrade and got a target price of $6.
  • Health Management Associates Inc. (HMA): the Florida based company owned 59 hospitals in 15 states. Although the stock gained 1.68% to $5.44 per share, it is still at trading at multi-year low.
  • Rehabcare Group Inc. (RHB): the rehabilitation program services provider gained 1.28% to $24.51 per share. The stock has been doing well since late last year on bullish earning result in the third quarter.
  • MedCath Corp. (MDTH): the North Carolina based company operates 10 hospitals in 8 states as well as 25 cardiac diagnostic and therapeutic facilities. The stock was up 0.73% to $23.31 per share which is still close to its 52 weeks low.
  • Universal Health Services Inc. (UHS): the company operated 31 acute care hospitals and 110 behavioral health centers in 32 states, as well as 12 surgical hospitals, and surgery and radiation oncology centers in 6 states. The stock was up 0.6% to $48.47 per share but is still not from the 52 weeks low.
  • Lifepoint Hospitals Inc. (LPNT): the 10 year old healthcare company operates 50 hospitals in 19 different states. Shares were up 0.54% to $27.97, only 60 cents higher than its 52 weeks low.

Saturday, January 12, 2008

A Renewed Industry

The nightmare came true with Oil price reaching $100 per barrel and could stay at this level for a while. So beside the big oil stocks that have been giving investor steady growth of income, there is another group of stocks that is also making a buzz recently - the alternative energy stocks.

These stocks have been the main focus recently not only with high oil price but also the new bill to boost productions of ethanol, a source of alternative energy. So let's take a look at the ethanol producers:
  • Andersons Inc. (ANDE): this is a diversified agricultural company with business in ethanol, retail, lawn care, fertilizer plants and railcars. The stock last month became part of the S&P SmallCap 600 index and also earlier in November, raised its 2007 earnings outlook by 25 cents per share. The stock is currently trading at P/E ratio of 14.3 and about 10% above its price a year ago at $46 per share.

  • Aventine Renewable Energy Holdings(AVR): the Illinois ethanol producer generated $1.6 billion in revenue in 2006 and would probably see similar result in 2007. The stock which went public in 2006 at $40 has not been doing well and reached as low as $7.76 this year. At $12 with P/E of 11.77 this stock could be a steal.

  • BioFuel Energy Corp.(BIOF): the company is still in development stage and is currently buliding ethanol production facilities in Minnesota and Nebraska. Investing in this stock involves higher risk. However this year the insiders have been buying shares so could be a slightly positive sign.

  • Cosan Ltd. (CZZ): this is a Brazil based company that makes sugar based ethanol so basically you will be buying alternative energy and also emerging market together on this stock. The stock was first listed on NYSE at September of 2007 and has been on the rise recently.

  • Pacific Ethanol, Inc. (PEIX): the Sacramento, California based ethanol maker is a company on the rise making $226 million in 2006 and will very likely double that amont in 2007. Unfortunatley the stock has been going the opposite way and dropped from all time high of $40 in May of 2006 to $4.2 in November of 2007. It is currently trading around $7 per share.

  • SunOpta Inc. (STKL): this is a diversified food company that makes and sells organic food, organic fruit as well as cellulosic ethanol. The company's revenue is steadily growing and generates net income. The stock has gained more than 100% for the past two years.

  • US BioEnergy Corp. (USBE): the Minnesota based ethanol maker saw its revenue jumped almost 10 fold from $16 million in 2005 to $124 million in 2006. More amazingly every quarter of this year the company generated about $150 million. This rapidly growing company is probalby one of the best ethanol stock to buy as the PE ratio is only at 13, comparably lower than other ethanol producers.

  • Verasun Energy, Corp. (VSE): the South Dakota based ethanol producer made $550 million in revenue in 2006 and may very like made about $700 million in 2007. The insiders this year are pretty bullish which is always a good sign. However at $12 per share the stock is still less than half of its opening day price of $30 back in 2006.
  • Xethanol Corporation (XNL): this is the only penny stock among the ethanol producers listed. However back in 2006 it was trading as high as $15 but since then plunged all the way to as low as 30 cents per share in November of 2007. The company recently announed unique technology to turn citrus waste in to ethanol and has been attracting bargain hunters to push the stock to near $1 per share.