Obama has been re-elected; “Obamacare” is the law of the land. It doesn’t matter if you agree or disagree with Obamacare, you might as well generate big profits from it.
Obamacare has been profitable for us. We bought Amerigroup Corp. AGP at $22.05, and, as of this writing, the stock is at $91.44 — this is a whopping 315% return.
It wasn’t long ago when we aggressively bought Tenet Healthcare THC at $20.40. Yesterday THC hit a 52-week high of $27.60.
Here are 26 ways to profit from both the long and the short side.
Hospital stocks
The best way to profit on the long side from Obamacare is to buy hospital stocks as utilization rates will increase and uncollected receivables will go down.
Under Obamacare, the pool of paying patients will increase. It is estimated that currently about 30 million Americans are uninsured. The increase in the number of paying patients will be huge.
By law, hospitals have to serve all patients who show up at their emergency rooms including indigents as well as those with no insurance. Hospitals also have difficulty collecting from low income Americans who may have no insurance or are underinsured. Some hospitals aren’t able to collect as much as 30% of their billings.
The earnings of some hospitals may increase by as much as 25%.
Our favorite stock in this sector is THC. Other hospital stocks on our list buy are Community Health Systems …Read more at MarkeWatch
