Metropolitan Heath Networks (MDF)

[stanu78]

Hi Kuwl,

I'm long on this stock and has been for a long time. ups and downs for the last couple years with the HMO story then the HMO is sold, and now going solo on PSN and then the patient care model.

Price targets is hard for the short term (i.e. most of my target for this stock has been wrong most of the time), but I do feel at this price (under $2), it is a very good deal. and as you know the company has been buying back stock at this level as well $1.8-1.9 average. I'm also periodically adding at these level (for the long haul).

Just for discussion sake, trying to put a target on thsi stock. If we put a PE of 10 on trailing 12 months, then you get $2.7 which is in line with what yaho finance analyst 12 month target shows (and if you want to add back the cash that the company have which is about 80 cents per share then you get $3.5 target, as the company has low/almost no significant debt)

Growth might be limited and margin might be pressured (and also some concern with the regulation from the government) but I like this business (and should still be in demand in the future)

I also like CNU (which is MDF competitor, also in florida. it's more expensive from valuation standpoint which makes me like MDF more, but I thought it helps me diversify on my healthcare holdings)

what is your take on this stock?

Stan