QHC - Quorum Health Corporation

[spartansaver]

VIC write up does a decent job of explaining the situation.

 

Smaller leveraged spinoff.

 

Q2 results came out recently and have crushed the stock.

 

I assume that QHC can get past short term issues and raise margins to a level in line with peers.

 

Management has outlined steps including: divesting of EBITDA negative assets (pay down debt) and hiring more physicians.

[Guest roark33]

Probably a donut, if not, a 4-bagger, invest accordingly....Jim Kelly criteria, yada, yada....

[spartansaver]

Smaller position as you said. Definitely an option.

 

Good to see management make some significant purchases after the drop. CFO doubled down. This is his third spinoff.

[Guest roark33]

I was actually impressed with those large purchases.  Made me take a second look.  Still think their heavy focus on Illinois and disparate geography makes it hard for them to survive.  You are basically hoping for a buyout from Lifepoint (where a lot of the execs worked), but that's a tough line of reasoning for an investment case.