Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Only Thing Systematic Is The Destruction Of America - 29th Sep 20
Fractional-Reserve Banking Is The Elephant In The Room - 29th Sep 20
Gold And Silver Follow Up & Future Predictions For 2020 & 2021 – Part I - 29th Sep 20
Stock Market Short-term Reversal - 29th Sep 20
How Trump co-opted the religious right and stacked the courts with conservatives - 29th Sep 20
Which RTX 3080 GPU to BUY and AVOID! Nvidia, Asus, MSI , Palit, Gigabyte, Zotac, MLCC vs POSCAPS - 29th Sep 20
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Obamacare Proof Stocks

Companies / Healthcare Sector Apr 17, 2014 - 04:08 PM GMT

By: Money_Morning

Companies

Now that all the key deadlines for Obamacare have finally taken effect, a lot of tech investors are busy trying to figure out how this will affect their portfolios.

It's easy to see why. This is the largest and most fundamental change to hit the healthcare sector in decades.


Not only that, but Wall Street is currently trying to pick the winners from the losers - and frankly isn't doing a particularly good job of it.

Fact is, Obamacare is at least partly responsible for some of the biotech sector's recent sell-off...

The Government Hammer Falls on Biotechs

For example, industry analysts recently cited the impact of a letter sent last month by several House members questioning the price of a blockbuster drug used to treat hepatitis C.

The issue was the cost of Sovaldi, a drug sold by Gilead Sciences Inc. (Nasdaq: GILD). Solvaldi costs $84,000 a year but is a godsend to patients because it helps prevent the need for a liver transplant that costs some $250,000 - assuming you can find a donor organ.

That missive roiled the biotech sector because many investors feared politics in advance of the mid-term elections might affect other medical technologies.

I think that's a classic overreaction in a jittery market. But it does bring up a very important point.

What investors really need to look for are stocks that are what I call "Obamacare-proof."

By that I mean we need to find companies that will profit over the long haul whether Obamacare remains in effect or not.

Let's assume for the moment that the Republicans hold the House and take the Senate this November and capture the White House in 2016. And let's further assume they gut the Affordable Care Act.

Even in that scenario, there is one sector that will continue to do well. The reason is that we'll still need a key piece of technology that can help rein in rising healthcare costs no matter what the political landscape looks like.

That's why an area broadly defined as healthcare information technology (IT) services will continue to play a crucial role in America's future.

So, today I want to examine this sector in some detail. First, I want to look at examples of new IPOs in the space. Then, to give you a heads up on long-term profit plays, I'm going to identify two promising startups on an IPO track.

And then I'll conclude by identifying what I think is one of the better Obamacare-proof stocks out there today.

So let's get started by looking at those two recent health IT public offerings.

Public Offering No. 1

Enterprise Healthcare Software

Castlight Health Inc. (NYSE: CSLT) is a leader of enterprise healthcare software. It operates a web platform that assists patients in understanding various aspects of their healthcare benefits, including coverage, costs, and preferences.

Founded in 2008, the San Francisco-based company's March IPO was one of the more highly anticipated new issues so far this year. It did not disappoint, quickly jumping almost 150% to around $40 a share, and raising $178 million.

Leading up to its market debut, the stock had a series of price upgrades, but eventually landed at $16 a share. At its peak, the stock's market cap was around $3 billion.

No doubt, it has given up nearly all of its gains during the tech sector's retreat. But at deadline it was still trading above its entry price and poised to go higher.

Public Offering No. 2

Digital Health & Wellness

Meantime, Everyday Health Inc. (NYSE: EVDY) is a health and wellness digital media company. Its portfolio includes some of the most popular health and wellness websites on the Internet, including MayoClinic.org and JillianMichaels.com. It also hosts PC and mobile apps for counting food calories and tracking fitness activities.

In total, the company operates 25 websites and 31 social media accounts. According to Fortune, one-third of U.S. physicians used Everyday Health's services in 2013, while 132 million unique visitors accessed the company's websites.

Everyday Health launched its offering in March at $14 a share, raising more than $110 million, and is trading right near that level.

But remember, we're not focused on the daily market action. We're looking at this area as playing a vital service for doctors, patients, and government agencies for many years to come.

That's why investors would do well to put two private companies in the sector on their radar screens. Both are getting a lot attention from venture capital firms and look like great candidates for successful IPOs.

Lock In on These Two Companies, Pre-IPO

Take the case of MindBody Inc. This is a provider of online marketing tools for clients in the health, wellness, and beauty industries. The company offers a suite of tools including networking capabilities, scheduling software, website analytics, and point-of-sale systems.

Over 33,000 businesses in 100 countries have used MindBody's marketing tools. Its MindBody Connect mobile app is also immensely popular with health and wellness practitioners.

Inc. magazine has ranked MindBody as one of the fastest-growing companies for the last six straight years. And from a funding perspective, there has been considerable venture capital money being funneled into MindBody, including $50 million from Montreux Equity Partners and Bessemer Venture Partners.

For its part, MedHOK Inc. offers software and cloud-based solutions to aid with everything from healthcare plans to specialty pharmacies. MedHOK has an extensive range of services it provides through one main platform, which gives the company a competitive advantage in the health IT sector.

By providing software-as-a-service, MedHOK offers its clients essential programs based in the cloud. The company has garnered upwards of $77.5 million in venture capital funding from firms like Bain Capital Ventures and Spectrum Equity.

Pick This Winner for Any Market

Now then, as much as we like several companies in this space, we think investors would do well to take a close look at IMS Health Holdings Inc. (NYSE: IMS).

The company remains the world's leading provider of sales and market research data to companies in the healthcare industry. It is a Big Data firm working exclusively in the healthcare industry and has shown stability in its financials and price performance.

From doctors and clinical researchers, to hospitals and biopharmaceutical companies, IMS Health supports the industry by providing the necessary data to benefit organizations and patients. The company does so by linking more than 100,000 data suppliers and working with over 9,500 healthcare professionals in 100 countries.

IMS stores patient data securely and anonymously in the cloud while processing over 45 billion healthcare transactions each year. The company's recent IPO at $20 a share raised more than $1.3 billion.

But this is a company and stock with enormous upside potential. IMS posted a profit of $82 million, with $2.5 billion in sales for 2013. That's a profit performance for a growth company that has recently gone public.

Over the long run, IMS should continue to do well. It has the right products for the right market at a time when the nation needs to stem the rise in healthcare costs.

So, investors who can look beyond the market's sell-off should do extremely well with this great Obamacare-proof stock.

Source : http://moneymorning.com/2014/04/17/these-stocks-will-prosper-regardless-of-obamacares-fate/

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules