I would have bought weeks ago but I screwed around too long setting up an online trading account through my bank.
When I started watching the stock in early February it was about $17.50. It had been don to 14 and up over 34 in the previous 52 weeks.
I looked the company up and it looks good. They make a lot of money by overcharging and excessive diagnoses through their own lab--Antech. They own Antech and the tests probably cost each VCA facility a fraction of what other vets are charged. Someone told me that Antech charges big volume vets only 1/4 of what they charge the small guys.
95% of outstanding shares are owned by mutual funds and they have gotten good press lately.
The reason I bought is I can now go to stockholder meetings in Santa Monica where I can gently guide them onto a path of righteousness as I have with Animal Services.
But 10 or 100 shares on Scottrade for a $7 transaction fee and join me setting veterinary medical care on the straight and narrow.
Seriously, get back into the stock market. The DJIA dropped from 9,300 to 6,500 in a matter of weeks. It is beginning to shoot back up almost as steeply. If you went to cash in your mutual funds, start averaging back in. I am now back in about 40% with 60% still in cash.
April 22 they release first quarter results. I don't know how they can be more than previous quarter except for maybe extra spay surgeries. If profit is down, they will go down. Long term they should do okay depending upon debt.
ReplyDeleteThe price is rising and in the face of anticipate slowdown, meaning they probably will beat expectations. The CEO bought a huge number of shares a few weeks ago as insider trading. Their last quarter 2008 numbers were great because even though usage was down, they made money by acquiring many new hospitals, firing everyone, required more diagnostic tests from the lab they own.
ReplyDeleteThere is more to stock pricing than week to week income.
Ed,
ReplyDeleteYour comments are pretty funny. Yes, ruthless companies that can show profit will do well.