This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hospitals Face a Baby-Boom Bust

A leading healthcare analyst sees no future in the for-profit hospital industry.

Jeff Villwock has spent the past 18 years following stocks in the hospital management space, twice landing on The Wall Street Journal's "All-Star Analyst Team" and once securing the title as top analyst in the bunch. He has seen the hospital sector survive -- and even thrive -- under both political parties throughout his long career.

With Democrats now wielding enough power to revamp the nation's entire healthcare system, however, he has decided to focus on a safer line of work -- building a medical school in St. Kitts.

"I think there will still be a for-profit hospital industry," says Villwock, who serves as a managing partner at Atlanta-based Genesis Capital. "I just don't think it will make a lot of money. [And] I think that's going to force people like me, who like to play in the for-profit healthcare business, to look for other opportunities."

With Democrats poised to win control of both the White House and Congress, Villwock issued perhaps the scariest report of his career last month. In a nutshell, he painted the Baby Boom -- whose members will start hitting Medicare age in less than three years -- as a giant bust for the hospital sector.

While Villwock foresees a seasonal rise in hospital stocks between now and next spring, which could boost his current investments in Health Management Associates (HMA) and Community Health Systems (CYH - Get Report), he warns of shrinking profits and dwindling equity value after that time.
1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
HMA $0.00 0.00%
WLP $136.01 1.43%
CYH $62.65 0.00%
UNH $121.81 0.00%
AAPL $126.44 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs