Glenview Capital Adds More Shares of Health Management Associates Inc (HMA)

LifePoint Hospitals, Inc. (NASDAQ:LPNT) grew its revenue by 9% in the first quarter of 2013 versus a year earlier, but it too experienced a sharp decline in earnings in percentage terms. With that company trading at 14 times consensus earnings for 2013, and its business not doing particularly well, we see no reason to prefer it to the other companies we’ve discussed. Tenet has more than doubled in price over the last year, bringing its forward P/E up to 14 as well. Revenue growth has been very limited, and we would be somewhat concerned that the stock is highly exposed to movements in the broader market with a beta of 2.4.

We don’t know what plans Glenview has for Health Management Associates Inc (NYSE:HMA), or even whether or not the fund actually has specific suggestions for management in mind (we would note that the stock has risen 4% on May 7^th, likely at least in part a reaction to the news). Last quarter was not a good one for the company, and with it not seeming too attractive for its industry and with its valuation dependent on a considerable improvement in its earnings we would advise against buying it at this time.

Disclosure: I own no shares of any stocks mentioned in this article.