Healthinvest Partners’ Top Stock Picks For 2016

#3 Gilead Sciences, Inc. (NASDAQ:GILD)

– Shares Owned by Healthinvest Partners Ab (as of December 31): 229,300

– Value of Holding (as of September 30): $23.20 million

Healthinvest Partners Ab sold 20,000 shares of the biopharmaceutical major Gilead Sciences, Inc. (NASDAQ:GILD) during the fourth quarter. Shares of Gilead Sciences have lost around 11% since the beginning of 2016 amid an overall market decline, even though the company delivered strong results for the last quarter with EPS of $3.32 beating the estimates of $3.00, while revenue of $8.51 billion was better than the expected $8.14 billion. According to many experts, Gilead Science current valuation is low taking into account its businesses and balance sheet and the fair value of its stock is significantly above the current levels. Another investor bullish on Gilead is John Armitage’s Egerton Capital limited, which reported 4.29 million shares in its latest 13F filing.

#2 GNC Holdings Inc (NYSE:GNC)

– Shares Owned by Healthinvest Partners Ab (as of December 31): 821,190

– Value of Holding (as of September 30): $25.47 million

GNC Holdings Inc (NYSE:GNC) also represents a new position in Healthinvest Partners’ portfolio during the fourth quarter. Shares of GNC Holdings Inc (NYSE:GNC) ended the fourth quarter 22% in the red, mainly on the back of weak financial results reported for the previous quarter. For the last three months of 2015, GNC Holdings posted EPS of $0.62, beating the estimates by $0.01, while the revenue of $618.2 million, was below the expectations. In addition, the company has recently hiked its dividend to $0.20 and its stock currently sports a dividend yield of 2.75%. Scott Scher & Michael Prober’s Clovis Capital Management is another shareholder of GNC Holdings, reporting a new position that contains 814,650 shares in its latest 13F filing.

#1 LifePoint Health Inc (NASDAQ:LPNT)

– Shares Owned by Healthinvest Partners Ab (as of December 31): 373,430

– Value of Holding (as of September 30): $27.41 million

Healthinvest Partners’ decision to increase its stake in LifePoint Health Inc (NASDAQ:LPNT) by 18% during the fourth quarter pushed LifePoint Health Inc (NASDAQ:LPNT) to become the fund’s largest equity holding at the end of December. Shares of LifePoint Health reached a lifetime high of $88.18 in July last year and have been on a gradual decline since then. Last week, LifePoint Health reported its financial results for the last quarter, which included EPS of $1.11, versus estimates of $1.06, while revenue of $1.37 billion, was slightly below the expected $1.39 billion. Ric Dillon’s Diamond Hill Capital disclosed holding 1.25 million shares of LifePoint Health in its 13F filing for the fourth quarter.

Disclosure: None