Healthcare - RPRX!!! - RVTY!!!
Value investors need to focus on this sector. There are lots of stocks near their lows. The concept of Bobby Kennedy Jr. changing healthcare was fun to talk about, but now it might be here. There are plenty of unknown unknowns.
This could be a once in a lifetime opportunity to buy healthcare stocks at a discount. Maybe I should own more? Healthcare is only 6% of small/mid cap indices, I have an 8% weight.
RVTY - $113 - is a play on the boom/bust of the lab equipment business. This is the old Perkin-Elmer after a major restructuring. The recent investor day was impressive. Select Equity did cut their stake by half, but it is still a large position.
RPRX - $25 - these are the guys who invented the drug royalty business. The concept works is gold and oil, why not use it for drugs. They have a solid and diversified, portfolio of royalties with little credit risk. Maybe this stock is too complex?
Smith & Nephew - SNN - $25 - Swedish activist working for change, Barrow Hanley, River Road, and Heartland own, tariff issues??, maybe a safer option than Royalty Pharma?
Azenta - AZTA - $50 - smart guys, big buybacks, 3x sales but 1.3x book, valuation is tricky, but great long-term business
Avantor - AVTR - $21 - the old Mallinkrocdt business back from private equity, Barrow and T Rowe own, China and opioid issues???, some debt
Charles River - CRL - $186 - new rules about China contract research are pending, animal rights issues, battleground stock?
Perrigo - PRGO - $26 - new management 7/23, over the counter birth control?, what is the next big OTC product? baby formula issues??
Bristol Myers - BMY - $57 - what will Bobby K do? medicare issues??
Henry Schein - HSIC - $70 - dental equipment, safe and steady, boring
Astrana Health - ASTH - $34 - potential 10-bagger if they have the secret sauce, outcome based medicine
Neogen - NEOG - $12 - hard to understand, tied to ag?, Select Equity and ron Baron own
Elanco Animal Health - ELAN - $12 - spin from Lilly
Merck - MRK - $98 - Bobby K???, best long-term story of the big guys
Roche - RHHBY - $35 - Bobby K???, good long-term story
Haemonetics - HAE - $75 - always controversial
Baxter - BAX - $30 - kidney sale is done, dividend cut is done, what is left? hospital beds and hospital supplies
Acadia - ACHC - $38 the most cursed industry, we need metal health care, but only crooks enter the business
Hologic - HOLX - $72 - safety issues, wait for the storm to pass