One Guy's Investments: Annual Checkup -- NHC

I don't believe I've ever actually mentioned my holdings in National Healthcare Corp. (NHC -- click to register for free RT streaming quote) on this site, though it has been in my portfolio for close to a year. This is a relatively small manager of health care facilities and services, mostly in the South, and I bought it because it was flying under the radar as a small cap AMEX stock (and was therefore cheaper than some of the big companies, like Sunrise) but is in an important business that I think should see continued dramatic growth. The company operates nursing homes and rehabilitation centers, as well as providing in-home care and similar services. They generally don't own the actual buildings, the real estate is held by a related company called National Health Investors (NHI) that trades as a REIT and is managed by more or less the same folks -- not unlike the strategies hotels have been following lately. NHC stock yields a small amount, and generally is not a fast mover -- some recent bumps on upgrades by minor analysts (the only ones who follow them) have brought notice, and they had a little trouble with the AMEX lately due to some registration mishaps that appear to have been totally insignificant. I am content to leave this company largely unwatched, and enjoy it's slow and steady advance as the population ages and the demand for their services skyrockets -- I expect they'll grow at a measured pace, and that the strong roster of insider owners will keep a good eye on their money for me. I purchased my shares last February at $34.20 and don't plan to buy or sell any of this one, though I may consider other investments in this sector if the bigger players ever reach good valuations.

Labels: NHC