“All of this uncertainty about the Affordable Health Care Act is, in my opinion, bringing about great buying opportunities for us. My newest recommendation in the Health Care sector is Universal Health Services, Inc. (UHS, $45). It is one of the largest health management companies in this country.
“Universal Health Services owns and operates several types of hospitals (25 acute care and 198 behavioral health) throughout the United States. Alan Miller founded the company in 1978, and continues in his role as Chief Executive Officer. The stock is trading at approximately $44 per share, but in late 2011 traded at $56.5. I believe this is largely a result of uncertainty.
“As I have previously mentioned numerous times, Wall Street, in my experience, hates uncertainty the most, because companies like United Health Services are resilient and can adapt to bad news. A big chunk of uncertainty will be resolved on November 6, Election Day.
“Fortunately, Mr. Miller owns 322,560 shares of Universal Health Services, which gives him a long-term perspective, which lets investors know that he does not plan on changing jobs anytime soon.”
- Russ Kaplan, Heartland Advisor, September 21, 2012