Below is a brief note from CEO Keith McCullough on why we're adding Mednax (MD) to the long side of Investing Ideas today:
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Mednax (MD) is down -1.3% here today on #decelerating volume after ripping higher in early August back to Bullish @Hedgeye TREND. Here's an excerpt from my Healthcare Team's Institutional Research note post that quarterly report: MD | CAN THEY LAND THE DISMOUNT? Mednax reported a positive quarter and stuffed several positive announcements into their 2Q18 earnings release. While maternity trends did not provide an extra same unit growth driver as we expected, same unit volume was inline. What appears to be an initially tepid move in the stock on the earnings release suggests there is lingering doubt management can deliver. Skepticism is warranted based on the margin destruction over the last 2 years, but executing a plan that drives EBITDA well north of $720M from the current run rate of $600M, our visibility into the mid $60s looks very attractive. Sounds good to me. Buy the dip, KM |
