The Dove Street Top 5

[mrmarket]

Here are my five favorite stocks from the most recent data dump:

AHS COWN NOAH NVEE SKX

I'll buy one of these this week. Which one do you like, and why??

[tiedyed1]

I like AHS as the sector is just starting to reap the benefits of us aging baby boomers.
AHS focuses on the staffing which only needs to grow.

There is a possible hiccup within the Healthcare sector:

The healthcare industry has been a big beneficiary of Obamacare, as the ACA is known, since the law has extended healthcare coverage to more than 16 million Americans who didn’t have coverage before. For hospitals, insurance companies, drugmakers and pharmacies, those are new customers with money to spend—in many instances backed by subsidies provided by the government.

The Supreme Court is poised to rule on a case, King v. Burwell, that challenges the validity of those subsidies in 34 states that rely on the federal healthcare exchange to administer Obamacare, instead of running one of their own. The case hinges on a technicality of the law, but if the justices side with the plaintiffs, it would substantially raise the cost of insurance for Obamacare enrollees in those states, resulting in an estimated 9.6 million people canceling their coverage. That would be 9.6 million fewer people paying for doctor visits, hospital care, medical tests and prescription drugs.

http://finance.yahoo.com/news/these-stocks-could-tank-when-the-supreme-court-rules-on-obamacare-180237045.html

My take is that the longer look is looking good overall and I think that, unlike sneakers and money managers, everyone needs healthcare (with or without Obamacare) and Healthcare staffing needs will continue to grow via AHS. While significant, AHS is not that big where I would not be surprised for these type of companies merging with others for further expansion as well.

-Adam
Old Hippy & Mortgage Pro

[Gary611]

Great chart, up 15% in the last 3 months, does it got another 15?

[tiedyed1]

I believe it does Gary. It is a growth company with the growth fueled by an increasing population requiring more healthcare. Maybe not 4-6 weeks but for 15% but I see no reason for anyone to say it is overvalued and the growth will continue. That is my take on it.

-Adam

[Duniyo]

AHS has a huge debt and low profitability margin. I have to admit I am not a fan of any of these companies but for the sake of picking a side I will go with SKX. I like Skechers products

[tiedyed1]

I would not consider 238M in debt huge for a company with 1.1B in revenues, a ROE of 15% and revenue and earnings growth of 36% and 60% respectively.
While the management and terms of the debt are critical, in many cases debt is fine.

I also like seeing things like this recently announced;

SAN DIEGO, June 22, 2015 /PRNewswire/ -- AMN Healthcare Services, Inc. (AHS), has been awarded a sole source contract with Premier, Inc. to offer healthcare staffing services and workforce solutions to Premier's alliance of approximately 3,400 hospitals and 110,000 other healthcare facilities.

Plenty of growth for AHS to keep the momentum going.

Disclosure: I currently do not own any shares of AHS; just my top 5 pick here and my .02

-Adam
Old Hippy & Mortgage Pro

[billyjoe]

I'll go with SKX and hope it has 15% left in it. AHS has too many red flags for me. Finviz flags AHS for PEG, P/B, P/cash flow, Debt/Equity, Insider transactions, and RSI (14). Great chart but I wouldn't want to be holding when the Sh*! hits the fan. Remember AMBA.

--------------billy

[tiedyed1]

Hi Billy;
I am not arguing the facts, but still like AHS better. Unlike AMBA, AHS is growing based on the continuous need for healthcare professionals (not a camera for a drone product).
I love service businesses as they are not reliant on a specific product as well as have a stable business model. (Being in a service business I am admittedly biased.)

Today's Supreme Court ruling on Obamacare not only has the Healthcare providers popping but these providers will in turn budget accordingly and continue to hire additional staff, which is where AHS steps in. Us baby boomers are just starting to see the need for more healthcare and that is not going to reverse.

Updated disclosure: I opened a new position in AHS today at 30.39

Getting ready to head to Chicago for the last Grateful Dead shows next week so I will wish everyone a happy Independence Day early!
Keep On Keepin' On;
-Adam
Old Hippy & Mortgage Pro

[Louetta]

Chill, Large Person.

[mrmarket]

I was on a whale watch today...forgot to buy my pick. Will do it Monday. Have a great weekend!

[Louetta]

I was on a whale watch today...forgot to buy my pick. Will do it Monday. Have a great weekend!

Play golf Monday. 36 holes.

[Louetta]

Play golf Monday. 36 holes.

I take it back. Looks like we're going to start down Monday. Thought it might take another day or two.

[mrmarket]

Greece is the word, is the word, is the word.