Our first idea is a fun whose top five positions are: MSCI Inc (MSCI, 8.36% of assets); Penn National Gaming Inc (PENN, 7.56%); Vail Resorts Inc (MTN, 6.74%); CoStar Group Inc (CSGP, 5.70%); and Ansys Inc (ANSS, 5.00%). Our second recommendation is a sale of a previous pick.
Buy: Baron Growth Fund Retail Shares (BGRFX)
From Forecasts & Strategies
Baron Growth Fund has been a consistent winner this year, rising 20% year to date. It invests in low-profile but well-managed companies such as Penn National Gaming, Vail Resorts, Arch Capital and FactSet. Baron Growth is also famous for what it does not invest in: Tesla! Conservative investors should consider investing in the Baron Growth Fund.
Mark Skousen & Jim Woods, Forecasts & Strategies, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, July 2021
Sell: Omega Healthcare Investors, Inc. (OHI)
From Forecasts & Strategies
Updated from WSBD 843, July 8, 2021
Omega Healthcare Investors, Inc. continues to struggle. It beat Street expectations last month, but the stock is drifting down again. CEO Taylor Pickett sent out a warning: “Facility occupancy continued to improve in the quarter but still sits meaningfully below pre-pandemic levels and, as a result, many operators continue to rely on federal and state government support. While an additional allocation of federal support was announced in the third quarter, it remains to be seen whether this will be sufficient to fund operator obligations through this continuing pandemic.”
He added, “Although we reported strong third-quarter adjusted funds for operations (FFO), these results include approximately $16 million of revenue recognized by applying security deposits, letters of credit and collateral to Agemo’s and Gulf Coast’s contractual obligations. When this collateral is exhausted and if these tenants continue not to pay rent, we expect that this would reduce our near-term adjusted FFO [funds from operations] financial results.”
I’ve decided it’s time to sell Omega Healthcare (OHI). It still pays a high dividend, but it’s no longer secure. I suggest you sell OHI.
Mark Skousen & Jim Woods, Forecasts & Strategies, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, July 2021