Posted
Apr 30 2008, 10:07 PM
by
Dave Dispennette
Growth Stocks
RBA @ $24.95 (Ritchie Brothers Auctioneers) conducts auctions of trucks and equipment via 110 locations, including 33 auction sites in 25 countries around the world. Revenues have increased between 18% and 22% during the last four quarters. Earnings are expected to grow 18% each of the next two years to $1 a share. They just completed a 3 for 1 split and sold off. It appears they found support at their rising 200 day moving average. We will establish a position here with a tight stop set at $24, so you have 0.95 cents downside, compared to $5 to $10 up.
Momentum Stocks
Don't look now, but the hospitals group is heating up and making its way higher for the first time in a couple of years. This doesn't make sense to us during an election year, but we can't fight the tape. Our favorite is:
CYH @ $37.53 (Community Health System) which operates 115 non-urban acute care hospitals geographically diversified across 27 states. Revenues have accelerated 110%, 129% and 136% during the last three quarters. earnings are expected to grow 268% this year and another 26% in 2009 to $2.92 a share. We are establishing a position here and will set our stop loss at $33.50. We also like UHS @ $62.64 (Universal Health), DYII @ $6.01 (Dynacq Healthcare), LPNT @ $30.12 (Lifepoint Hospitals) and THC @ $6.40 (Tenet Healthcare) at these levels.
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