Global Opportunites:
SELL LH (Laboratory of America Holding Corp)

Lab Corp has reported two poor quarters in a row. Momentum in the stock has peaked. Their revenue growth is anemic at 2%. They are paying acquisition costs for the increase in revenue. The inorganic growth appears to be hurting margins.

So, in order to grow they need to pay people to join them and when they do, it hurts their legacy business. Stock buybacks are the best thing LH has going for it right now. But 6% reinvested cash flow to equity and 2% revenue growth are not enough to justify holding a stock with a P/E of 16 and a P/B over 3.3

LH

As always, please feel free to contact me with any questions or concerns. 

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For information on Alhambra Investment Partners’ money management services and global portfolio approach, Douglas R. Terry, CFA is reachable at: dterry@4kb.d43.myftpupload.com

Disclaimer: The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Alhambra Investment Partners LLC, do not constitute investment advice offered by Alhambra,  are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and are not warranted to be correct, complete or accurate. Except as otherwise required by law, Alhambra shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use.