Healthspring, Inc. (HS) has surprised on estimates 3 out of the last 4 quarters by an average of 6.45%. The stock is cheap. It trades at just 6.7x forward earnings and has a PEG ratio of 0.67.

Company Description

Healthspring coordinates care plans through the Medicare Advantage market in Alabama, Florida, Illinois, Mississippi, Tennessee and Texas. The company also provides a national stand-alone Medicare prescription drug plan.

Healthspring Surprised by 22.22% in the Third Quarter

On Oct 29, Healthspring reported its third quarter results and easily beat the Zacks Consensus by 14 cents per share. Earnings per share were 77 cents compared to the Zacks Consensus Estimate of 63 cents. The company reported 53 cents in the year ago period.

Premium revenue rose 26% to $649.8 million compared to the year ago period. Membership in the Medicare Advantage jumped 19.4% compared to the year ago period and was up

...

Fine chemicals company Synthetech Inc. today announced its second quarter of fiscal 2010 results, which ended September 30, 2009, posting improvements across the board, fueled by pipeline projects, operational efficiencies and other growth initiatives.

Revenue for the quarter was $4.0 million, up 22 percent from revenue of $3.3 million in the second quarter of fiscal 2009. Operating income for the current quarter was $668,000, compared to an operating loss of $333,000 for the same period last year. Net income for the current quarter was $639,000, or $0.04 per share, compared to last year’s second quarter net loss of $367,000, or $0.03 per share.

The company also posted six-month results for fiscal 2010, reporting revenue of $8.7 million, which resulted in operating income of $1.7 million and net income of $1.6 million, or $0.11 per share. For the comparable period last year, revenue of $8.2 million resulted in an operating loss of

...

Chindex International, Inc. reported net income of $538,000 or $0.03 per share, in its second fiscal quarter of 2010. This was down sharply from the $862,000 or $0.05, reported in the same quarter last year. Revenues for the quarter were $38.1 million, approximately equal to last year’s second fiscal quarter.

Roberta Lipson, the CEO of Chindex International, Inc., said, “Our second quarter reflects continued growth in the Healthcare Services division, offset by disruption related to construction at our Beijing facility…As we enter the back half of the fiscal year, we remain extremely well-positioned to capitalize on China’s premium-quality healthcare services market, continued economic vibrancy and opportunities created by healthcare reform.”

The company saw particular strength in its Healthcare Services division where revenue increased 10% from last year due to strong growth in patient volume during the quarter. Chindex International, Inc. reported operating income of $2.3 million in this division in

...

A bill to freeze cuts to doctors’ Medicare payments – one that should have been heavily bipartisan – is now in serious danger of passing. The American Medical Association (AMA) promised Majority Leader Harry Reid (D) 27 Republican votes, but now it appears there are as few as two. Undoubtedly, 27 is an ambitious number for any bipartisan bill, but the enormous drop in support is indicative of an overwhelming feeling in Washington. It is a sentiment against any healthcare reform, one that has grown within the Republican party and continues to spread across the aisle to conservative Democrats. Though we at Election Stocks still believe something will pass reforming the healthcare system, these kind of let downs are still quite alarming.

Another Monday… Another “Game-Changing” Deal

by Martin Denholm, Senior Editor

Monday is Merge Day.

A few weeks ago, the market saw the busiest day of deal-making in three months, as the news-wires lit up with news of several big takeover announcements, including Walt Disney (NYSE: DIS) buying Marvel (NYSE: MVL).

It happened again the following week. In fact, over a 10-day period, more than $40 billion worth of deals were announced.

And even as the third quarter winds down, the pace is still frenetic in the M&A market.

Today saw technology equipment firm Xerox (NYSE: XRX) announce a $6.4 billion deal to buy Affiliated Computer Services (NYSE: ACS) – its biggest acquisition on record.

Xerox investors greeted the news with a collective “ugh,” as shares of the photocopying and business supplies giant spiraled down by 17%. While perhaps

...

When it comes to the healthcare debate, let’s keep one obvious fact in mind: Expenses are out of control and must be reined in. That’s true with or without a massive reform bill.

And that plays right into the hands of Medidata Solutions Inc. (Nasdaq: MDSO).

The company is a leading provider of electronic data capture (EDC) and clinical data management systems (CDMS). In laymen’s terms, it helps drug companies go from the Dark Age into the Digital Age.

And it’s a transformation that we desperately need. Here’s why…

Anyone For a Tedious, Time-Consuming Paper Trail?

Roughly 75% of all clinical trials – the most critical function of drug companies, yet also the biggest drain on resources ($45 billion, annually) – are done on paper.

That’s right. Even in today’s high-tech world, in three out of four clinical trials, information for each patient is literally recorded on pre-printed paper, specifically a case

...

Medidata Solutions: The One Healthcare Stock That’s Not Sucking Up to Washington

by Louis Basenese, Advisory Panelist

When it comes to the healthcare debate, let’s keep one obvious fact in mind: Expenses are out of control and must be reined in. That’s true with or without a massive reform bill.

And that plays right into the hands of Medidata Solutions Inc. (Nasdaq: MDSO).

The company is a leading provider of electronic data capture (EDC) and clinical data management systems (CDMS). In laymen’s terms, it helps drug companies go from the Dark Age into the Digital Age.

And it’s a transformation that we desperately need. Here’s why…

Anyone For a Tedious, Time-Consuming Paper Trail?

Roughly 75% of all clinical trials – the most critical function of drug companies, yet also the biggest drain on resources ($45 billion, annually) – are done

...

The “Tiregate” Scandal Can’t Derail This Growth Story…

by Robert Williams, Publisher, Investment U

The 35% tariff that President Obama just slapped on Chinese tire imports is not sitting well with the nation’s top brass, notably President Hu Jintao.

Chinese officials say that the tire decision represents a dangerous precedent toward protectionism and against the notion of free trade. They’re even threatening to “re-evaluate” their position on U.S. imports, like automobiles and poultry.

But Tiregate is more about the United Steelworkers union – the dominant force in U.S. tire plants – than anything else. The union is a pivotal ally in Obama’s fight on healthcare reform.

As such, I expect the spat to resolve itself at the upcoming G-20 summit in Pittsburgh. So don’t let this tit-for-tat derail your long-term investment outlook on China.

The rise of the middle

...

In the last few months we have seen a very strong stock market rally. The market has recovered from highly distressed levels and posted exorbitant gains.  In addition the “wall of money” from the U.S. Federal Reserve has pushed risk-prone investors back into the market, pushing its general level up. 

You see, the massive fiscal stimuli and ultra-easy money from the Fed does indeed have real effects on the economy.  Whether you want to call them artificial or real, the stimuli have moved and will continue to move profits, until it is withdrawn.  And the timing of the deployment of the fiscal and monetary stimuli, the timing of its positive effects and the timing of its eventual removal are uncertain.

In addition, we have many short-term uncertainties. The upcoming Group of 20 (G20) meeting has potentially important ramifications for the global financial system and for global currencies. We also will get more

...

The just-concluded Group 20 (G20) meeting left us with a chorus of very “prudent” governments and central bankers singing the praises of easy monetary and fiscal conditions. So where can we take refuge when all the central banks in the world print money and governments run deficits in order to spend like drunken sailors? The answer is gold.

Fortunately for us, we foresaw this scenario a while ago. On April 20, I recommended that investors diversify their portfolios by adding the SPDR Gold Trust ETF (NYSE: GLD).  The fund is up about 14% since that recommendation, but it’s not yet time to sell, as there are still a number of factors working in gold’s favor.

For starters, there is more and more talk of the U.S. dollar losing some of its luster as a reserve currency.  But this debate is moot for the moment.  The reality is

...