Saturday, March 17, 2012

Best Health Stocks 2012

Last month, the danger of European debt contagion, tensions in Korea, and inflation in China were in focus. But late in January, those concerns gave way to worries over political revolutions in Tunisia and Egypt, and other countries in the Middle East. But crisis creates opportunity, so some North American energy stocks could benefit. In addition, a second U.S. federal judge ruled against the recently enacted health care bill, and there are some companies that stand to benefit from these rulings. That’s why our top stock picks this month are oil stocks and health care stocks.
Where do the markets go from here? So far, stocks appear to be ignoring the inherent danger of a serious crisis in the Middle East even after Moody’s downgraded their rating on Egyptian bonds. But with 8% of the world’s goods and 3.3% of its oil sent through the Suez Canal, there is reason for concern.
Technically the next support for the Dow Industrials is at the 20-day moving average at 11,811 with 11,740 being a stop-loss point for traders. But the zone 11,557 (50-day moving average) to 11,450 is the major support zone and a penetration of that zone would cause a change in trend. A sharp reversal up to a new closing high would negate prior downside reversals. However, increased volatility and heightened political risks make owning domestic oil stocks and health care stocks a common-sense approach to offsetting the current political and investment risks.

Best Health Stocks 2012:Tenet Healthcare Corporation (THC)

 Tenet Healthcare Corporation, an investor-owned health care services company, operates acute care hospitals and related health care facilities. The company?s general hospitals offer acute care services, operating and recovery rooms, radiology services, respiratory therapy services, clinical laboratories, and pharmacies. It also provides intensive care, critical care and/or coronary care units, physical therapy; and orthopedic, oncology, and outpatient services; tertiary care services, such as open-heart surgery, neonatal intensive care, and neuroscience; quaternary care in areas, including heart, liver, kidney, and bone marrow transplants for children; gamma-knife brain surgery; and cyberknife surgery for tumors and lesions in the brain, lung, neck, and spine. As of June 30, 2011, it operated 49 acute care hospitals, and a critical access hospital with a combined total of 13,420 licensed beds primarily serving urban and suburban communities in 11 states of the United States. The company also owns an interest in a health maintenance organization and operate various related health care facilities, including a long-term acute care hospital and various medical office buildings; revenue cycle management and patient communications services businesses; physician practices; captive insurance companies; and other ancillary health care businesses, such as including ambulatory surgery centers, diagnostic imaging centers, and occupational and rural health care clinics. In addition, Tenet Healthcare Corporation owns an interest in a management services subsidiary that provides network development, utilization management, claims processing, and contract negotiation services to physician organizations and hospitals that assume managed care risk. Tenet Healthcare Corporation was founded in 1967 and is headquartered in Dallas, Texas.
Advisors' Opinion:
  • By Sam Collins At 2011-9-11
    Health care services company Tenet Healthcare Corporation (NYSE: THC ) ope! rates 50 general hospitals and a critical access hospital serving urban and rural communities in 12 states. It was recently listed by CNBC as No. 3 on its list of "20 Stocks With the Potential to Pop."
    THC is recommended by 20 analysts with a mean target of $6.96.
    Technically its stochastic issued a buy signal and three recent CBR buys were triggered. A break above $4.60 would yield a target of $6.

Best Health Stocks 2012:Cyanotech Corporation (CYAN)

 Cyanotech Corporation engages in the cultivation, production, and sale of natural products derived from microalgae worldwide. The company?s products include BioAstin natural astaxanthin, a dietary antioxidant for use as a human nutraceutical and functional food ingredient to support and maintain the body's natural inflammatory response, as well as to enhance skin, muscle, and joint health; and Spirulina Pacifica, a nutrient-rich dietary supplement used for extra energy, as well as used as a strengthened immune system and source of antioxidant carotenoids. It sells its products to manufacturers, formulators, and distributors in the health foods and nutritional supplements markets; and to distributors, retailers, and direct consumers in the form of packaged consumer products. The company markets its products through online, as well as through resellers. Cyanotech Corporation was founded in 1983 and is headquartered in Kailua-Kona, Hawaii.

Best Health Stocks 2012:Trinity Biotech plc (TRIB)

 Trinity Biotech plc acquires, develops, manufactures, distributes, and sells diagnostic test kits and instrumentation worldwide. The company offers clinical laboratory products, including diagnostic tests and instrumentation, which detect infectious diseases, sexually transmitted diseases, and autoimmune disorders. It also sells raw materials to the life sciences industry. In addition, the company offers point of care diagnostic tests, which are carried out in the presence of the patient, principally to diagnose the presence of HIV antibodies in the patient. Its customers include hospitals, clinical laboratories, commercial reference laboratories, and research institutions. Trinity Biotech plc sells its products directly, as well as through distributors and strategic partners. The company was founded in 1992 and is headquartered in Bray, Ireland.

Best Health Stocks 2012:Dr. Reddy's Laboratories Ltd (RDY)

 Dr. Reddy?s Laboratories Limited, together with its subsidiaries, operates as a pharmaceutical company. It produces finished dosage forms, active pharmaceutical ingredients and intermediates, and biotechnology products. The company also conducts research in the areas of cancer, diabetes, cardiovascular, inflammation, and bacterial infection. In addition, it involves in the contract manufacture generic prescription and over-the-counter products for branded and generic companies in the United States. The company primarily focuses on therapeutic categories of cardiovascular, diabetes management, gastro-intestinal, and pain management. It markets its products in India, the United States, Europe, and the Russian Federation. The company has a co-development and commercialization agreement with Rheoscience A/S for the development and commercialization of Balaglitazone/DRF 2593, a partial PPAR-gamma agonist for the treatment of type 2 diabetes; an agreement with ClinTec International for the development of an anti-cancer compound, DRF 1042; collaboration with the National Cancer Institute in Maryland; and an agreement with Argenta Discovery Limited for the joint development and commercialization of a novel approach to the treatment of chronic obstructive pulmonary disease. It also has an agreement with 7TM Pharma for drug discovery collaboration on selected drug targets; and an agreement with GlaxoSmithKline plc to develop and market pharmaceuticals for the treatment of cardiovascular disease, diabetes, oncology, gastroenterology, and pain management. Dr. Reddy?s Laboratories Limited was founded in 1984 and is headquartered in Hyderabad, India.

Best Health Stocks 2012:Allergan Inc. (AGN)

 Allergan, Inc., a multi-specialty healthcare company, discovers, develops, and commercializes specialty pharmaceutical, medical device, and over-the-counter products for the ophthalmic, neurological, medical aesthetics, medical dermatological, breast aesthetics, obesity intervention, urological, and other specialty markets worldwide. It operates in two segments, Specialty Pharmaceuticals and Medical Devices. The Specialty Pharmaceuticals segment offers a range of pharmaceutical products, including ophthalmic products for chronic dry eye, glaucoma therapy, ocular inflammation, infection, allergy, and retinal diseases; Botox for the therapeutic and aesthetic indications; skin care products for acne, psoriasis, and other skin care products; eyelash growth products; and urologics products. The Medical Devices segment offers a range of medical devices, such as breast implants for augmentation, revision, and reconstructive surgery; obesity intervention products, including the Lap-Band System and the Orbera Intragastric Balloon System; and facial aesthetics products. The company also offers Contigen for the treatment of urinary incontinence due to intrinsic sphincter deficiency. It sells its products to drug wholesalers, independent and chain drug stores, pharmacies, commercial optical chains, opticians, mass merchandisers, food stores, hospitals, group purchasing organizations, integrated direct hospital networks, and ambulatory surgery centers, as well as to medical practitioners, including ophthalmologists, neurologists, dermatologists, plastic and reconstructive surgeons, aesthetic specialty physicians, bariatric surgeons, pediatricians, urologists, and general practitioners. Allergan, Inc. has strategic research collaboration agreements with ExonHit Therapeutics S.A.; Spectrum Pharmaceuticals, Inc.; and Pieris AG. The company was founded in 1948 and is headquartered in Irvine, California.

Best Health Stocks 2012:HMS Holdings Corp (HMSY)

 HMS Holdings Corp. provides cost containment, coordination of benefits, and program integrity services. The company?s services enable clients to recover amounts due from liable third parties, reduce fraud, and ensure regulatory compliance. Its coordination of benefits services route claims paid by a government program to the liable third party, which reimburses the government payor; cost avoidance services provide validated insurance coverage information that is used by government payors to reject claims that are the responsibility of a third party; and program integrity services are designed to identify payment errors and recover the erroneous payments. The company also offers audit programs, program design, benefit management, and general and pharmacy systems consulting services. It serves state Medicaid agencies, Medicaid and Medicare managed care plans, government and private self-funded employers, pharmacy benefit managers, child support agencies, the Veterans Health Administration, the Centers for Medicare and Medicaid Services, commercial plans, healthcare payors and sponsors, business outsourcing and technology firms, and government. The company was founded in 1974 and is headquartered in New York, New York.

Best Health Stocks 2012:Myriad Genetics Inc. (MYGN)

 Myriad Genetics, Inc., a molecular diagnostic company, focuses on the development and marketing of novel predictive medicine, personalized medicine, and prognostic medicine tests primarily in the United States. The company markets BRACAnalys medicine test for the treatment of hereditary breast and ovarian cancer; COLARIS molecular test for hereditary colorectal and uterine cancer; COLARIS AP medicine test for the treatment of hereditary colorectal cancer; and MELARIS medicine test to treat hereditary melanoma. It also offers OnDose, a personalized medicine test for colon cancer; PANEXIA, a predictive medicine test for pancreatic cancer; PREZEON, a personalized and prognostic medicine test for cancer; Prolaris, a prognostic medicine test for prostate cancer; and TheraGuide 5-FU, a personalized medicine test for drug toxicity. In addition, the company provides protein analysis services to the pharmaceutical, biotechnology, and medical research industries utilizing its multiplexed immunoassay technology. Myriad Genetics, Inc. was founded in 1991 and is headquartered in Salt Lake City, Utah.

Best Health Stocks 2012:St. Jude Medical Inc. (STJ)

 St. Jude Medical, Inc. develops, manufactures, and distributes cardiovascular and implantable neurostimulation medical devices worldwide. It operates in four segments: Cardiac Rhythm Management, Cardiovascular, Atrial Fibrillation, and Neuromodulation. The Cardiac Rhythm Management segment offers products for cardiac arrhythmias, or irregular heart beats. Its products include tachycardia implantable cardioverter defibrillator systems to provide therapy to patients suffering from lethal heart conditions, such as sudden cardiac arrest; cardiac resynchronization therapy devices to treat heart failure patients; pacemakers to help people whose hearts beat too slowly or who suffer from other cardiac arrhythmias; and leads, which connect devices to the heart and carry the electrical impulses to the heart and information from the heart to the device. The Cardiovascular segment offers mechanical and tissue replacement heart valves, as well as heart valve repair products. It also provides disposable interventional devices, including vascular closure devices, compression assist devices, percutaneous catheter introducers, diagnostic guidewires, and temporary bipolar pacing catheters, as well as diagnostic coronary imaging technology. The Atrial Fibrillation segment offers a system of products for access, diagnosis, visualization, and ablation that assist physicians in diagnosing and treating various irregular heart rhythms used in the electrophysiology lab and cardiac surgery. It provides electrophysiology introducers and catheters, cardiac mapping, navigation and recording systems, and ablation systems. The Neuromodulation segment offers a range of neurostimulation systems, such as rechargeable implantable pulse generators, primary cell implantable pulse generators, and radio frequency powered systems. St. Jude Medical markets its products through a direct sales force and independent distributors. The company was founded in 1976 and is headquartered in St. Paul, Minnesota.
Advisors' Opinion:
    By Rahemtulla At 2012-2-23 St. Jude Medical(STJ) makes devices for cardiac rhythm management and cardiac surgery. It reported fourth-quarter results last week. St. Jude's adjusted earnings of 75 cents, representing 17% year-over-year growth, exceeded analysts' consensus target by 1.8% and its nearly $1.4 billion of sales beat the consensus by 2.5%, but the stock dropped 1% upon announcement. The operating profit margin dropped from 29% to 25%. Still, return on equity, a key measure of efficiency for stock holders, at 21%, beat the peer group and S&P 500 averages. Jefferies had a positive reaction to the report, noting that St. Jude is poised to gain market share in 2011 on new products. St. Jude has attractive growth rates, having boosted sales and net income 11% and 18% annually, on average, over a three-year span. It is investing heavily in research and development to maintain its above-peer growth. Jefferies forecasts research spending rising from 12% of sales to nearly 13% in 2011. Although this investment spending will hinder margins in the near-term, it will also ensure continuation of St. Jude's robust product pipeline. Bullish Scenario: JPMorgan expects St. Jude to gain 27% to $52. Bearish Scenario: Citigroup predicts a drop of more than 7% to $38.

Best Health Stocks 2012:AmerisourceBergen Corporation (Holding Co) (ABC)

 AmerisourceBergen Corporation, a pharmaceutical services company, provides drug distribution and related services to healthcare providers and pharmaceutical manufacturers in the United States, the United Kingdom, and Canada. The company distributes brand-name and generic pharmaceuticals, over-the-counter healthcare products, home healthcare supplies and equipment, and related services to various healthcare providers, including acute care hospitals and health systems, independent and chain retail pharmacies, mail order pharmacies, medical and dialysis clinics, physicians, and long-term care and other alternate site pharmacies. It also offers various services, such as pharmaceutical packaging, pharmacy automation, inventory management, reimbursement and pharmaceutical consulting and staffing services, logistics services, and pharmacy management. In addition, AmerisourceBergen provides scalable automated pharmacy dispensing equipment, medication and supply dispensing cabinets, and supply management software to various retail and institutional healthcare providers. Further, the company offers distribution and other services to physicians, who specialize in various disease states; distributes plasma and other blood products, injectible pharmaceuticals, and vaccines; and provides drug commercialization, third party logistics, reimbursement consulting, data analytics, and outcomes research services for biotech and other pharmaceutical manufacturers, as well as practice management and group purchasing services for physician practices. Additionally, it delivers unit dose, punch card, unit-of-use, and other packaging solutions to institutional and retail healthcare providers; and offers contract packaging and clinical trial material services for pharmaceutical manufacturers. The company serves customers through a network of distribution and service centers, and packaging facilities. AmerisourceBergen was founded in 1985 and is headquartered in Chesterbrook, Pennsylvania.

Best Health Stocks 2012:Alexion Pharmaceuticals Inc. (ALXN)

 Alexion Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of biologic therapeutic products for treating patients with severe and life-threatening disease states in the United States, Europe, Latin America, Japan, and the Asia Pacific. It focuses on developing products for the treatment of diseases in the areas of hematology, nephrology, neurology, ophthalmology, and cancer. The company develops and commercializes Soliris (eculizumab), a therapeutic product for the treatment of patients with paroxysmal nocturnal hemoglobinuria (PNH), a blood disorder. It also conducts various Phase II clinical trail programs on Soliris for its usage for the treatment of cold agglutinin disease; atypical hemolytic uremic syndrome; presensitized renal transplant; kidney transplant for catastrophic antiphospholipid syndrome; ABO incompatible renal transplant; dense deposit disease; myasthenia gravis; neuromyelitis optica; and dry age-related macular degeneration. In addition, the company conducts Phase IV clinical trails on Soliris for its usage for the treatment of PNH registry; and Phase I clinical trails on Samalizumab for the treatment of oncology diseases, such as chronic lymphocytic leukemia and multiple myeloma. Alexion Pharmaceuticals, Inc. serves specialty distributors and specialty pharmacies, which supply physician office clinics, hospital outpatient clinics, infusion clinics, or home health care providers; government agencies; and hospitals, hospital buying groups, pharmacies, other healthcare providers, and distributors. The company was founded in 1992 and is headquartered in Cheshire, Connecticut.
Advisors' Opinion:
  • By Hesler At 2011-8-26
     Alexion Pharmaceuticals Inc. (NASDAQ: ALXN ) specializes in rare and life-threatening diseases. In late June the company initiated a clinical trial of its drug Soliris to see if it could treat the infection behind the German E. coli scare. I! f it suc ceeds, it would be the perfect launching point into the European market. The stock is up 32% since our last issue thanks to strong earnings.

Best Health Stocks 2012:Quality Systems Inc. (QSII)

 Quality Systems, Inc. engages in the development and marketing of healthcare information systems in the United States. The company operates through three divisions: QSI Dental, NextGen, and Practice Solutions. The QSI Dental division develops, markets, and supports software suites for dental and medical practices, as well as supports medical clients that utilize its UNIX based medical practice management software product and Software as a Service based NextDDS financial and clinical software. It also develops, markets, and manages electronic data interchange(EDI)/connectivity applications, as well as QSInet application service provider solutions. The NextGen division offers NextGen ambulatory product suite comprising electronic health records and enterprise practice management solutions; and NextGen inpatient products, including NextGen Clinicals for work efficiency and communication, as well as NextGen Financials, a financial and administrative system. It also offers community connectivity solutions, such as health information exchange, patient portal, and health quality measures; and EDI, hosting, data protection, consulting, and physician resources services. The Practice Solutions division provides technology solutions and consulting services in the areas of revenue cycle management services, including billing and collection services for medical practices. The company?s solutions automate various aspects of medical and dental practices, as well as networks of practices, such as physician hospital organizations and management service organizations, ambulatory care centers, community health centers, and medical and dental schools. Quality Systems was founded in 1974 and is headquartered in Irvine, California.
Advisors' Opinion:
  • By Squeeze Ideas At 2011-8-29
    Healthcare Information Services Industry. Market cap of $2.37B. Short float at 27.58% (equivalent to 31.73 days of average volume).
    Net Income grew by 33.31% ($17.53M vs. $13.15M y/y), while Operating Cash Flow grew by 34.23% ($17.92M vs. $13.35M y/y) (comparing 3 months ending 2010-12-31 vs. 3 months ending 2009-12-31).
    Other Highlights: When compared to industry competitors, the company reported better than average profit margins during the most recent quarter. Gross margins came in at 68.54%, higher than the industry average at 46.33% (most recent quarter, annualized). Operating margin came in at 28.06%, higher than the industry average at 13.44%, while net profit margin came in at 28.06% vs. the industry average at 13.44%.