Being a physician, it is difficult to always appreciate HMO's, but I have one for you today.
Mid Atlantic Medical Services, Inc., is, according to CNN.Money, "...a holding company for subsidiaries active in managed health care and other life and health insurance related activities."
The stock is having a great day today: trading at $55.56, up $3.33 or 6.38%. The company trades at a trailing p/e of 20.35 with a market cap. of $2.6 Billion. There are 46.654 Million shares outstanding.
On May 7, 2003, MME, per the NYTimes on the Web, announced strong first quarter earnings: diluted earnings per share were $.84 compared to $.45 in the first quarter of 2002. Revenue increased to $664 million from $550 million. Net income was $34 million vs $18 million last year.
Morningstar shows a steady growth in revenue from
$1.1 billion in 1997, $1.2 billion in 1998, $1.3 billion in 1999, $1.5 billion in 2000, $1.8 billion 2001, and $2.3 billion in 2002. At the current revenue rate we about $2.5 billion in 2003.
Free cash flow is beautiful improving from $72 million in 2000, to $109 million in 2001, $175 million in 2002 and $236 million in the trailing twelve months.
The company appears to have NO long term debt per morningstar.com and has LOADS of cash at $591.2 million with $184.9 million in other current assets vs $520.7 million in current liabilities.
I do not own any shares of this. But this is sure a pretty picture. As much as I feel about HMO's....this sure looks like an investment opportunity to me!
Regards to all my friends. Drop me a line a bobsadviceforstocks@lycos.com and I will try to get back to you ASAP!
Bob