Topic: How To Invest

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

Article Excerpt

Medical Facilities Corp., $15.65, symbol DR on Toronto (Shares outstanding: 31.3 million; Market cap: $487.8 million, www.medicalfacilitiescorp.ca), owns majority interests in four specialty surgical hospitals in South Dakota, Oklahoma and Arkansas, 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 centre specializes in outpatient surgical procedures. Patients typically stay in this facility for less than 24 hours. On June 4, 2015, the company sold its 65%-owned Dakota Plains Surgical Center in South Dakota for $33.8 million. Medical Facilities’ share of the gain on the deal was $9.3 million after tax. Medical Facilities took a big drop last week after reporting its latest quarterly results. In the three months ended September 30, 2015, the company’s revenue fell 1.5%, to $73.1 million from $74.2 million a year earlier (all figures except share price and market cap in U.S….