Topic: How To Invest

May I have your opinion please on Toronto-based Medical Facilities Corp.? Thanks in advance.

Article Excerpt

Medical Facilities Corp., $15.06, symbol DR on Toronto (Shares outstanding: 31.4 million; Market cap: $470.9 million, www.medicalfacilitiescorp.ca), owns majority interests in five specialty surgical hospitals in South Dakota and Oklahoma, as well as an ambulatory surgery centre in California. The specialty hospitals perform scheduled surgical, imaging and diagnostic procedures. Their revenue comes from fees they charge for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures. Patients typically stay in this facility for less than 24 hours. In the three months ended March 31, 2013, Medical Facilities’ revenue rose 23.7%, to $72.9 million from $58.9 million a year earlier (all figures except share price and market cap in U.S. dollars). The gain mostly came from the company’s fifth hospital; it bought a 51% interest in the Arkansas Surgical Hospital, in Little Rock, Arkansas, for $36.7 million in November 2012. Cash flow per share fell 11.4%, to $0.31 from $0.35. Medical Facilities will benefit from rising…